US Stock Market Overview – Stocks Slide and Volatility Rose Despite Solid PMI Data
US stocks moved lower on Wednesday despite news that the House and the White House had agreed to a temporary spending bill. All sectors in the S&P 500 index were lower, driven down by Energy. Cyclicals were the best performing sector in the S&P 500 index. Energy shares were under pressure despite a rally in crude oil and natural gas. Crude oil moved higher following a larger than expected draw in gasoline inventories. Mortgage applications rose in the latest week rising nearly 7%. This confirms Tuesday’s better than expected existing home sales data. The VIX volatility index rebounded rising nearly 6%, and nearly hitting 2.50. US manufacturing PMI rose in September according to a report from IHS Markit.
Mortgage Applications Continue to Rise
The Mortgage Bankers Association’s reported that total mortgage application volume increased 6.8% last week. Refinance demand surged up 9% for the week and 86% annually. The refinance share of mortgage activity increased to 64.3% of total applications from 62.8% the previous week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $510,400 increased to 3.10% from 3.07%.
Manufacturing Activity Rose but Services Eased
IHS Markit reported on Wednesday that the initial manufacturing index rose to 53.5 in September from 53.1 in the prior month. This is a 20-month high. The agency also reported that total business activity index slipped to 54.4 in September from 54.6 in the previous month. New orders increased for the second straight month. The activity has been helped by an acceleration in the pace of new business growth at services providers.
This article was originally posted on FX Empire
