Today was another down day for stock investors as the major indices—the Nasdaq 100 (QQQ), the S&P 500 (SPY), and the Dow Jones Industrial Average (DIA)—finished today’s trading lower. Interestingly, energy (XLE) was the only sector that was in the green, while the tech sector (XLK) was the session’s laggard. In addition, across all three ETFs, trading volume was lower than the average.
Separately, U.S. retail sales rose by 1.4% to $734.9 billion in March, which was a clear improvement from February’s weaker 0.2% gain. Year-over-year, retail sales increased by 4.6%. Categories like motor vehicles, furniture, and clothing saw notable strength, which some analysts believe is due to Americans buying more things in order to avoid paying tariffs. For instance, car and parts dealer sales surged by 8.8% compared to a year ago.
Manufacturing also showed signs of growth in March, with factory output increasing by 0.3%. Year-over-year, factory production climbed by 1%, and the sector expanded at a 5.1% pace in Q1. However, analysts warn that this growth could slow as global tariffs begin to kick in. Durable goods like vehicles and aerospace equipment posted gains, but nondurable goods were mixed. Overall industrial production slipped by 0.3%, and capacity utilization edged lower to 77.8%, which means that businesses are still operating below long-term averages.
Meanwhile, homebuilder sentiment in April edged up slightly from 39 the month before to 40 due to a small drop in mortgage rates. Still, the index remains in pessimistic territory thanks to rising material costs as a result of tariffs. According to the National Association of Homebuilders, 60% of builders say their suppliers have already raised prices, which has added an average of $10,900 to each home’s construction cost. In response, nearly a third of builders cut prices, and 61% used sales incentives. Economists say policy uncertainty is making it harder for builders to plan and price homes.