The S&P 500 was trading in the green on Thursday after some solid housing data eased some concerns about the U.S. economy sliding into recession.
The broad market index rose 0.5%, and the Nasdaq Composite gained 0.7%. The tech-heavy index's gains were supported by gains in large-cap tech stocks such as Meta Platforms and Amazon, which rose about 4% and more than 1%, respectively. The Dow Jones Industrial Average was trading 217 points higher, or 0.5%.
New economic data released Thursday suggested that economic concerns may have been overblown. Data from the National Association of Realtors showed that existing home sales in February rose 4.2% from January, while industry analysts had expected a 3% decline. Additionally, jobless claims rose only slightly last week while layoffs remained low.
The data came after Fed Chairman Jerome Powell said the economy is "overall strong" and that he believes policy is "well positioned" to respond to signs of weakness in economic data. He also suggested the potential impact of tariffs on inflation is likely to be temporary or transitory.
On Wednesday, the Fed maintained its forecast for two rate cuts this year and kept the federal funds rate in a range of 4.25% to 4.5%. However, the central bank also raised its inflation outlook and lowered its economic growth projections. Most traders, however, expect the Fed to hold off on any action before officials see the impact of tariffs.
Stocks bounced back on Wednesday after the Fed's decision, regaining some ground after last month's sharp declines. The Dow rose 0.9% and the S&P 500 gained more than 1%. The Nasdaq gained 1.4%, but is still down 11% in the past month, a steep correction.
The S&P 500, which briefly slipped into correction territory last week, is now down more than 7% from its record high. Over the past month, the index has fallen nearly 7%.
As the White House's tariff policy rattled markets earlier this month, President Donald Trump said the economy could go through a "transition period." Tariff exemptions on certain imports from Canada and Mexico expire on April 2. (Newsmaker23)
Source: CNBC
Tested EN...
Asian stock markets weakened for the second consecutive day, indicating that the initial rally that had been "speedy" at the start of the year is starting to lose steam. At the same time, US governmen...
US stocks were mixed on Wednesday as investors weighed uneven economic data against expectations for eventual Federal Reserve easing, with the S&P 500 easing 0.2% and the Dow Jones sliding 0.8% fr...
European stocks were in mixed territory on Wednesday morning, as regional market jitters grow over U.S. President Donald Trump's threat to annex Greenland. The pan-European Stoxx 600 was little chang...
Asian stock markets weakened slightly on Wednesday after posting their best start to the year in history. The decline was driven by a decline in Japanese stocks amid escalating tensions with China. Th...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...