Stocks Rally | Earnings Commence | Tepid Inflation
U.S. equity markets rebounded strongly on Tuesday following a mid-day reversal on Monday as positive vaccine news, stimulus hopes, and solid bank earnings offset concern of reopening reversals.
Following a decline of 0.9% yesterday, the S&P 500 finished higher by 1.3% today while the Dow Jones Industrial Average surged by 557 points after gaining 11 points yesterday.
Bouncing back from losses of 1.2% yesterday, Equity REIT ETFs finished higher by 0.8% with 14 of 18 property sectors in positive territory while Mortgage REITs jumped 1.7%.
Homebuilders were among the leaders today after the MBA reported that mortgage applications for new home purchases surged 54.1% in June compared from a year ago and 20% from last month.
Core Consumer Price Index rose just 1.22% in June from last year, the lowest year-over-year rise in core inflation since 2010. Excluding shelter, however, Core CPI ex-Shelter rose a paltry 0.35% in June as inflation remains a distant concern.