US Stock Market Overview – Stocks Rally as Large Cap Tech Continues to Pace the Broader Markets
US stocks moved higher on Monday, with big-cap tech shares leading the way higher. Microsoft hit the $200 per share level for the first time. Apple shares surged another 2% following news that the company will completely ditch Intel processors in its machines and devices. Most sectors in the S&P 500 index were higher, led by Utilities and Technology, while communications bucked the trend. Existing Home sales tumbled more dropping more than expected. Crude oil prices closed above $40 per barrel for the first time since early March, surging 2% but this failed to buoy the energy sector. The VIX volatility edged lower on Monday, down to 32.5 but was unable to drop below the 50-day moving average. The elevated level of volatility is continuing to provide the wall of worry the market needs to climb.
Apple Breaks with Intel
Apple Inc. reported that it severing its relationship with Intel Corp. and transitioning its line of computers to processors it has designed itself. The news was announced on Monday at the app developers’ conference. The company also highlighted a new app to provide real-time translation, a new effort to use an iPhone for car keys.
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Existing Home Sales Drop Sharply
May’s existing-home sales tumbled falling 9.7% in May as compared with April, to a rate of 3.91 million units, according to The National Association of Realtors. Sales were down 26.6% annually. That is the largest annual decline since 1982 and the slowest sales pace since October 2010. These numbers are based on closed sales. The tight supply kept the pressure on home prices. The median price of an existing home sold in May was $284,600. That is an increase of 2.3% compared with May 2019 and the smallest annual rise since February 2012.