Investors Betting On Economic Recovery

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as investors betting on economic recovery. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Stock futures fall slightly, continuing volatile week on Wall Street

U.S. stock futures ticked lower in overnight trading and pointed to modest losses at the open Wednesday, following a weak session that snapped a three-day winning streak for markets. Fueling the volatility is uncertainty around a possible coronavirus treatment and vaccine and how economies will fare in reopening, from a health perspective.

The S&P 500 (SPY) jumped +1.67% today. All 11 sectors landed in positive territory as shown in the sector graph below. Gains ranged from +3.99% to less than 1%, check sector graph for specifics.

The Dow Jones index rose +369 points (+1.52%) to close at 24,575. The Nasdaq added +190 points (+2.08%) to settle at 9,375.

Investors Betting On Economic Recovery

Stocks ended in the green Wednesday with all 3 major averages gaining at least 1.5% as investors bet towards a re-opening of the US economy.

Facebook shares rallied more than 6% to reach a record high. Amazon also hit an all-time high, closing higher by 2%. Facebook’s gains came as investors cheered the company’s new e-commerce, Facebook Shops, while Amazon continues to benefit from consumers ordering online.

“The next three to six weeks are likely to be important for the financial markets as a majority of states are in the process of reopening their economies to varying degrees,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute, in a note. Stocks have already “priced in some degree of reopening success.”

However, “we continue to believe that consumer spending may be slower to come back than the market appears to currently expect,” Wren added.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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5/20/20

S&P 500 Sector Graph

Investors Betting On Economic Recovery

S&P 500 (SPY)

Investors Betting On Economic Recovery

Communication Services (XLC)

Investors Betting On Economic Recovery

Consumer Discretionary (XLY)

Investors Betting On Economic Recovery

Consumer Staples (XLP)

Investors Betting On Economic Recovery

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Energy (XLE)

Investors Betting On Economic Recovery

Financials (XLF)

Investors Betting On Economic Recovery

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Investors Betting On Economic Recovery

Utilities (XLU)

S&P 500 Sector Heat Map

 

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