Markets Rally on Strong Housing Report

After a few unpleasant days, the S&P 500 looks to gain back some lost ground today. There’s been growing concern about the credit bubble in China, but the Chinese now seem determined to keep rates reasonable. While the reaction to the Fed’s news from last week has hurt our market, the pain has been much greater in emerging markets. The U.S. market has been the safe haven.

Today’s Case-Shiller report showed that home prices rose more than expected in April. A recovering housing market is obviously good news. The issue for the Fed is that housing is one area of the economy where lower rates can help, but what about other sectors?

Posted by on June 25th, 2013 at 9:38 am

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