Amidst a backdrop of fluctuating US stocks and mixed economic data, market participants navigated through a volatile trading session on Tuesday. US stocks experienced a late-session pullback on Tuesday, pausing their record-setting momentum witnessed during the first quarter of the year. Despite earlier gains, major indexes reversed course with the tech-heavy Nasdaq Composite leading the decline, closing down approximately 0.4%. The S&P 500 and the Dow Jones Industrial Average also dipped, ending the day lower by nearly 0.3% and 0.1%, respectively.
The Commerce Department’s Census Bureau reported a 1.4% increase in durable goods orders for February, signaling a rebound in manufacturing activity. The rise was particularly driven by upticks in transportation equipment and machinery orders, suggesting resilience in the sector despite recent challenges.
The S&P CoreLogic Case-Shiller National Home Price Index revealed a 6% year-over-year increase in home prices for January, outpacing December’s 5.6% gain. This uptick marked the highest annual surge since 2022, indicating continued strength in the housing market.
However, consumer sentiment took a hit as the latest data from The Conference Board’s Consumer Confidence Index showed a slight decline. While the overall index remained relatively unchanged, the “Expectations Index,” which gauges short-term outlook, dropped notably. This dip, falling to 73.8 from February’s 76.3, raises concerns about future economic conditions and potential recessionary signals.
Investors eagerly await the release of the Personal Consumption Expenditures Price Index (PCE) later this week. As the Federal Reserve’s preferred measure of inflation, particularly “core” PCE growth, this data will offer critical insights into the trajectory of price levels and inflationary pressures.
In corporate news, former President Donald Trump’s social media venture made its much-anticipated debut on Wall Street. Following a merger with Digital World Acquisition Corp., shares of Trump Media & Technology Group Corp. (DJT) experienced significant volatility, surging over 50% at one point during the session before settling with a 16% gain by day’s end.
While US stocks experienced a setback amid mixed economic data, investors remain vigilant as they await key indicators later in the week. With consumer confidence wavering and inflationary concerns looming, market participants are closely monitoring developments for insights into the future direction of the economy and financial markets.
