On Wednesday, the S&P 500 Index closed down 0.04%, while the Dow Jones Industrial Average fell 0.57%, reaching a 1.5-week low. The Nasdaq 100 Index, however, rose 0.58%, driven by a rally in technology stocks, particularly NXP Semiconductors NV, which surged over 25% after reporting strong earnings. Additionally, crude oil prices soared over 6% to a 3-week high due to an ongoing U.S. naval blockade against Iran, putting pressure on inflation expectations.
U.S. housing starts unexpectedly increased by 10.8% month-over-month in March to a 15-month high of 1.502 million units, surpassing expectations of a decline to 1.380 million. Meanwhile, capital goods new orders excluding defense rose by 3.3%, the largest gain in nearly 5.75 years, compared to an expected 0.5% increase. The Federal Open Market Committee (FOMC) maintained the federal funds rate at 3.50% to 3.75%, with an 8-4 vote, amidst hawkish comments from Fed Chair Jerome Powell regarding monetary policy restraint.
In the interest rate markets, the 10-year T-note yield climbed to a one-month high of 4.41%, pressurized by rising crude oil prices and stronger-than-expected economic data. Swaps indicate only a 12% chance of a rate hike by the European Central Bank at its upcoming meeting, as economic confidence in the Eurozone fell to a nearly 5.5-year low of 93.0, further complicating the financial landscape.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
