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Market Update: Tue, Sept 15, 2020 | LPL Financial Research

Market Update: Tue, Sept 15, 2020 | LPL Financial Research

September 16, 2020

Global stocks look to rally. Most major Asian indexes were higher overnight following strong data on Chinese industrial activity and retail sales, although Japan’s Nikkei lagged. The Euro Stoxx 600 is higher at midday. The S&P 500 Index opened higher, extending Monday’s rally and benefiting from the positive international tone. The S&P 500 gained 1.3% Monday while the small cap Russell 2000 Index climbed more than 2.5% as merger activity, vaccine news, and a shift in sentiment after two weeks of consolidation helped propel gains.

Fed meeting starts today. The Federal Reserve’s (Fed) two-day policy meeting starts today and will conclude Wednesday with the release of its policy statement and a new set of economic projections at 2 p.m. ET, followed by a press conference by Fed Chair Jerome Powell. While rates are expected to remain unchanged, market participants will be watching for more information on the Fed’s revised inflation targeting and its updated assessment of the economy. For a preview of the Fed meeting and other recent central bank activity, see today’s LPL Research blog.

Technical update. The real estate and technology sectors led a broad-based advance Monday, with the S&P 500 finally gaining 1.3% for the day. That bounce, combined with this morning’s move higher, shows the resilience of the index’s 50-day moving average (3326), a level it hasn’t fallen below since mid-April. Nevertheless, we would caution that neither the technology sector nor Nasdaq Composite have reached oversold conditions in their current correction.

COVID-19 news. The seven-day average of new US daily cases rose by about 270 to 34,633 on Monday. Hospitalizations also moved in the wrong direction as the seven-day average increased from 1,177 to 1,241 (source: COVID Tracking Project). These numbers may still be distorted coming off the weekend and are not encouraging, although the number of deaths at 382 on Monday was well below the seven-day average of 745 and hopefully is the start of a trend.

LPL Research in the Media

LPL Research on Yahoo! Finance. LPL Financial Chief Market Strategist Ryan Detrick joined Yahoo! Finance’s The Ticker to discuss the recent mergers and economic recovery.



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