Last Updated: 4:04 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.55%, 0.64%, and 0.85%, respectively.
Nevertheless, the U.S. economy is showing signs of slowing down, with retail sales rising less than expected in February and homebuilder confidence hitting its lowest level since August. Retail sales increased by 0.2% in February, below the 0.6% expected by economists, while homebuilder confidence fell 3 points to 39 in March, which was dragged down by tariff concerns, higher construction costs, and economic uncertainty.
The slowdown in retail sales was partly due to the downward revisions in January’s data, as it fell by 1.2% instead of the initial 0.9% decrease. However, the control group, which excludes volatile categories, rose by 1% in February, above expectations. This rebound is seen as a relief, as consumer spending is a key driver of the U.S. economy.
When it comes to the decline in homebuilder confidence, this can be attributed to tariff concerns, which could increase building material costs, specifically lumber, and raise home prices. In fact, the National Association of Home Builders estimates that tariffs could add $9,200 to the cost of a home. In addition, builders are still facing challenges such as labor and lot shortages, which are making the impact of the tariffs worse.
As a result, the weakening economic data has led to many economists revising down their growth forecasts for the U.S. economy, as the decline in homebuilder confidence and retail sales are seen as signs that growth is slower than initially thought.
First Published: 4:54 AM EST
U.S. stock futures dipped on Monday following a challenging week for equities. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.6%, 0.55%, and 0.59%, respectively, at 4:20 a.m. EST, March 17.
In the previous week, major indices witnessed a decline, with the S&P 500 and the Nasdaq Composite (NDAQ) both down for the fourth consecutive week. Also, the Dow Jones saw its largest weekly drop since 2023. This downside was due to rising trade tensions and growing concerns about a potential U.S. economic slowdown.
This week, investors are awaiting several key economic reports that could influence market sentiment. Today, U.S. Retail Sales data is due for release, which provides insights into consumer spending. Economists anticipate a 0.6% increase in retail sales for February.
Further, investors will closely monitor the Federal Reserve’s policy decision on Wednesday. While interest rates are likely to remain unchanged, Fed Chair Jerome Powell’s post-meeting comments will help gauge the central bank’s future policy direction.
Adding to these key events, Nvidia (NVDA) CEO Jensen Huang‘s talk at the GTC conference is set to draw attention.
Meanwhile, the U.S. 10-year treasury yield was stable, floating near 4.308%. Simultaneously, WTI crude oil futures are trending higher, hovering near $67.69 per barrel as of the last check.
Elsewhere, European indices opened higher today as investors awaited key economic reports, such as Italy’s latest Inflation data.
Asia-Pacific Markets Ended Higher on Monday
Most of the Asia-Pacific indices were in the green today as China disclosed a plan to boost consumption. The measures include raising salaries and household spending, and stabilizing both stock and real estate markets.
At the same time, Hong Kong’s Hang Seng Index was up 0.77%. Further, Japan’s Nikkei and Topix indices gained 0.93% and 1.19%, respectively. Also, China’s Shanghai Composite index climbed 0.19%, while the Shenzhen Component index was down 0.18%.
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