US stocks reversed gains late in Tuesday’s trading day as markets continued to take a breather from a record-setting run that’s become the story on Wall Street during the first quarter of the year.
The tech-heavy Nasdaq Composite (^IXIC), which was on pace for a record close, fell late in the session to close down roughly 0.4%. The S&P 500 (^GSPC) dipped nearly 0.3%, while the Dow Jones Industrial Average (^DJI) dropped about 0.1%.
On Tuesday, the focus turned to economic data. Durable goods orders rebounded during the month of February, rising 1.4% last month amid increases in transportation equipment and machinery orders, according to the Commerce Department’s Census Bureau.
In other economic news, the S&P CoreLogic Case-Shiller National Home Price Index rose 6% in January from a year ago, up from December’s 5.6% gain. January’s annual increase was the highest since 2022.
Meanwhile, a fresh reading on US consumer confidence showed consumers are feeling less confident about the future state of the US economy.
According to new data released Tuesday morning, The Conference Board’s Consumer Confidence Index for March came in at a reading of 104.7, little changed from a revised 104.8 in February.
However, the “Expectations Index,” which tracks consumers’ short-term outlook for income, business, and labor market conditions, fell to 73.8 in March from 76.3 last month. Historically, a reading below 80 in that category signals a recession in the coming year.
All of the data this week serve as appetizers for the main event on Friday, when the government will release the Personal Consumption Expenditures Price Index, otherwise known as PCE. That contains the Federal Reserve’s preferred look at the pace of inflation, in the form of “core” PCE growth.
In company news, former President Donald Trump’s social media company made its Wall Street debut after merging with Digital World Acquisition Corp. Shares of Trump Media & Technology Group Corp. (DJT), which had risen more than 50% earlier in the session, finished the day up 16%.
Live12 updates
Consumer Discretionary leads sector action
US stocks continued to extend gains amid a record-setting run.
In afternoon trading, the Dow Jones Industrial Average (^DJI) jumped about 0.3%, or more than 100 points, while both the tech-heavy Nasdaq Composite (^IXIC) and benchmark S&P 500 (^GSPC) each rose roughly 0.2%.
Consumer Discretionary led the day’s sector action, followed by Financials and Health Care. Utilities and Energy served as the afternoon’s biggest laggards.
(Source: Yahoo Finance) Consumers less confident about economic future
Consumers are feeling less confident about the future state of the US economy, according to new data released Tuesday morning.
The Conference Board’s Consumer Confidence Index for March came in at a reading of 104.7, little changed from a revised 104.8 in February.
February’s preliminary reading was 106.7. It was the first time confidence had declined since November. Economists surveyed by Bloomberg expected a reading of 107 for March.
In one positive, the “Present Situation Index,” which measures consumers’ assessment of current business and labor market conditions, increased to 151 in March from 147.6 in February.
However, the “Expectations Index,” which tracks consumers’ short-term outlook for income, business, and labor market conditions, fell to 73.8 in March from 76.3 last month. Historically, a reading below 80 in that category signals a recession in the coming year.
“Consumers’ assessment of the present situation improved in March, but they also became more pessimistic about the future,” said Dana Peterson, chief economist at The Conference Board.
“Confidence rose among consumers aged 55 and over but deteriorated for those under 55. Separately, consumers in the $50,000-$99,999 income group reported lower confidence in March, while confidence improved slightly in all other income groups,” Peterson added. “However, over the last six months, confidence has been moving sideways with no real trend to the upside or downside either by income or age group.”
*Shaded areas indicate recession (Source: The Conference Board)
Credit: Source link
