Alex Pettee, CFA
Vaccine Hope | DéJà Vu | Housing Stays Hot
U.S. equity markets rallied Wednesday on another slate of positive vaccine news and solid corporate earnings, as well as signs that the recent uptick in coronavirus cases may be waning.
Adding to gains of 1.3% yesterday, the S&P 500 finished higher by 0.9% today while the Dow Jones Industrial Average rose by 228 points after yesterday's 557 point-surge.
After gaining 0.8% on Tuesday, the broad-based Equity REIT ETF finished higher by 1.0% with 15 of 18 property sectors in positive territory while the Mortgage REIT ETF jumped 5.0%.
Perhaps signaling a return of the "reopening rally," small-cap and mid-cap stocks led the gains today while hotel, retail, and casino REITs all surged more than 6% on the day.
The housing market continues to lead the early stages of the economic rebound. The MBA reported that mortgage applications to purchase a home rose again last week and are now higher by 16% from the same time last year.