Last Updated: 4:19 PM EST
Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.66%, 1.07%, and 0.62%, respectively.
Home construction in the U.S. surged in February as warmer weather helped builders recover from winter disruptions. Single-family housing starts jumped by 11.4% to an annual rate of 1.108 million units, with strong growth in the Northeast and South. However, the broader housing market still faces challenges. Indeed, rising tariffs on materials like steel, aluminum, and Chinese imports are increasing construction costs. Meanwhile, permits for future homebuilding fell 0.2%, which suggests that builders may slow down in the coming months.
Manufacturing also saw a boost in February, with industrial production rising 0.7% and exceeding expectations. Factory output increased by 0.9% thanks to a strong 8.5% jump in motor vehicle production. However, businesses remain cautious due to ongoing tariff uncertainties. Indeed, some companies are rushing to complete orders before higher import duties take effect out of fear that supply chains will be disrupted and costs will rise.
At the same time, inflation concerns are rising as import prices increased by 0.4% in February, which matched January’s gain. Higher prices for consumer goods and fuel are contributing to this trend and raising concerns about cost pressures for businesses and households.
Therefore, the Federal Reserve is expected to keep interest rates steady at 4.25%-4.50% as officials assess the impact of tariffs and economic policies. While financial markets anticipate rate cuts later this year, there is still a lot of uncertainty about how inflation and trade policies will affect economic growth.
First Published: 4:17 AM EST
U.S. stock futures edged lower on Tuesday morning despite the major indices witnessing gains for two consecutive days. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.28%, 0.18%, and 0.19%, respectively, at 4:17 a.m. EST, March 18.
In Monday’s trading session, the Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) closed higher by 0.9%, 0.6%, and 0.3%, respectively. Market sentiment was influenced by softer-than-expected retail sales data, which fueled hopes that the Federal Reserve might consider lowering interest rates later in the year.
Despite this positive momentum, the Nasdaq Composite remains in correction territory, down over 11% from its recent peak. Also, the other two indices are down for the year due to concerns over economic data and trade policies.
Looking ahead, investors are focused on the central bank’s two-day policy meeting, which begins today. The market expects the Fed to maintain current interest rates and is closely watching any insights about the Fed’s future monetary policy.
Moreover, investors will be monitoring economic data releases on Imports, Housing Starts, Building Permits, and Industrial Production, due for release later today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.308%. Simultaneously, WTI crude oil futures are trending higher, hovering near $68.15 per barrel as of the last check.
Elsewhere, European indices are expected to open higher today as investors focus on Germany’s debt reforms for fiscal flexibility, U.S.-Russia talks on a Ukraine ceasefire, and Eurozone’s economic sentiment data.
Asia-Pacific Markets Ended Higher on Tuesday
Asia-Pacific indices were in the green today. Japan’s stocks gained from a weaker yen, which benefits the country’s export-driven industries. Also, Japanese trading firms surged as Warren Buffett’s Berkshire Hathaway increased its holdings. Further, Hong Kong stocks gained on encouraging AI news.
At the same time, Hong Kong’s Hang Seng Index was up 2.3%. Further, Japan’s Nikkei and Topix indices gained 1.2% and 1.29%, respectively. Also, China’s Shanghai Composite and Shenzhen Component indices climbed 0.11% and 0.52%, respectively.
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