Last Updated: 4:05 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 0.3%, 0.22%, and 0.03%, respectively.
The U.S. labor market remains stable despite a slight increase in unemployment claims last week. In fact, initial jobless claims rose by 2,000 to a seasonally adjusted 223,000, with layoffs staying low but hiring slowing. However, more workers are staying on the unemployment rolls longer than last year, which suggests that there are fewer job opportunities. Economists are pointing to high interest rates and policy uncertainty as the factors that are making businesses hesitant to expand their workforce.
Separately, in the housing market, existing home sales rebounded in February by rising 4.2% from January. This came as mortgage rates eased slightly and more homes became available. However, sales were still down 1.2% from a year ago, which ended a streak of five consecutive annual increases.
In addition, the median home price reached a record high of $398,400 for February – the 20th straight month of annual price gains. While mortgage rates remain elevated at an average of 6.65%, they have declined slightly from mid-January to provide some relief for buyers. It is worth noting that the housing market has struggled since mortgage rates began rising in 2022.
Furthermore, housing inventory continues to increase, with 1.24 million unsold homes at the end of February, up 17% from the previous year. This increase has helped stabilize supply levels, though homes are taking longer to sell, with an average of 42 days on the market. Economists note that while more options are available, high borrowing costs still make affordability a challenge for many buyers.
First Published: 3:50 AM EST
U.S. stock futures climbed Thursday morning, buoyed by the Federal Reserve’s projection of two interest rate cuts later this year. This positive signal from the Fed sparked renewed optimism among investors, following a period of market volatility. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.49%, 0.19%, and 0.36%, respectively, at 3:46 a.m. EST, March 20.
In Wednesday’s trading session, all three major indices witnessed a major rebound. The Dow Jones, the S&P 500, and the Nasdaq Composite climbed 0.9%, 1%, and 1.4%, respectively.
The market rally was fueled by the Fed’s decision to maintain current interest rates while signaling plans to ease monetary policy in case of an economic slowdown and a weak labor market. Notably, the Fed’s projections suggest that trade policies are unlikely to impact the central bank’s plans.
In key stock market news, Boeing (BA) emerged as the top performer on both the S&P 500 and Dow Jones on Wednesday, gaining nearly 7%. The surge came after it disclosed a deal to sell more planes to Japan Airlines.
Further, shares of several Nvidia (NVDA) partners saw gains on Wednesday, following CEO Jensen Huang’s keynote at the company’s GTC event. Companies like Coherent (COHR) and Supermicro (SMCI) gained over 6%, due to optimism about their potential to benefit from Nvidia’s ongoing expansion in AI and data center technologies.
Investors are closely monitoring Initial Jobless Claims data for further insights into the labor market’s health. Also, Existing Home Sales and Philadelphia Fed Manufacturing survey data points are scheduled for release today.
On the earnings front, several major companies such as Darden Restaurants (DRI), Nike (NKE), FedEx (FDX), Accenture (ACN), Luminar Technologies (LAZR), and Micron Technology (MU), are set to report quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.246%. Simultaneously, WTI crude oil futures are trending higher, hovering near $67.58 per barrel as of the last check.
Elsewhere, European indices are expected to open lower today as investors await key monetary policy decisions from major central banks in the region.
Asia-Pacific Markets Ended Lower on Thursday
Asia-Pacific indices were in the red today as investors digested the decisions of the U.S. Fed and People’s Bank of China to keep interest rates stable.
At the same time, Hong Kong’s Hang Seng Index was down 2.34%. Further, China’s Shanghai Composite and Shenzhen Component indices declined 0.51% and 0.91%, respectively.
Investors should note that Japan stock market was closed on Wednesday for the Vernal Equinox holiday.
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