The market rebounded sharply in the afternoon as home-working and megacap stocks jumped, driving the broader market to a strong close.
The S&P closed up to 0.8% and the nasdaq ended up to 2.5%. The Dow ended flat. The S&P ended close to 3,252, above its June 8 high of 3,230.
Fab 5 and impulse stocks took over after a flat opening, outperforming the weak amplitude. Amazon led the way, increasing 8% following target price hikes. Tesla won almost 10%.
The strength of big-name stocks offset some weakness in selling the news in vaccine stocks after encouraging data.
The cash rotated into more defensive play moves from home that increased last week. The Direxion Work From Home ETF (NYSEARCA: FMH) gained 4%with Twilio jumping 10%.
Tech and Consumer Discretionary were the only sectors with gains.
Expectations of a longer work-from-home environment may be rising as Republicans and Democrats disagree on a plan for new fiscal stimulus measures. The federal unemployment supplement of $ 600 per week will run out on Saturday, which will see a sharp decline in disposable income available to spend on reopened businesses.
“The high-frequency data points to a stagnation in economic activity from mid to late June. Restaurant reservations have stagnated along with credit card data: switch to online and online shopping, ”said Diane Swonk of Grant Thornton. “Job sites showing troubling trends in hiring and sentiment collapsed in early July.”
In commodities, oil and gold were higher, while silver futures settled above $ 20 / oz. for the first time since 2016.
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