Last Updated: 4:15 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 0.99%, 0.63%, and 0.2%, respectively.
On Monday, the National Association of Home Builders released its U.S. NAHB Housing Market Index for January. The report measures home builder sentiment by surveying around 900 companies. A reading above 50 indicates that more home builders have a positive view of market conditions than a negative one.
Today’s number came in at 51, meaning that most have a positive view of the market. In addition, this print is higher than the 48 that was expected and three points higher than last month’s reading.
According to NAHB Chief Economist Robert Dietz, expected rate cuts in the second half of the year are the main driver behind this increase in sentiment.
First Published: 5:08 AM EST
U.S. futures traded mixed on Monday morning as investors were focused on the Federal Reserve’s policy meeting this week. Futures on the Nasdaq 100 (NDX) and S&P 500 (SPX) were up by about 0.62% and 0.29%, respectively, at 4:22 a.m. EST, March 18, while the Dow Jones Industrial Average (DJIA) index was down 0.09%.
Last week, all three major indices, the S&P 500, Dow Jones, and Nasdaq 100, registered slight losses. The decline coincides with higher-than-anticipated core and wholesale inflation data for February. This data dampened investor sentiment and fueled concerns that the Fed may maintain a more hawkish stance on interest rates at its upcoming policy meeting on March 19-20.
Economist Kathy Bostjancic of Nationwide Mutual Insurance expects no major changes to the interest rate plans, citing recent high inflation data as a deterrent to near-term rate cuts by the central bank. In fact, she anticipates that the Fed will slightly raise its inflation prediction for this year.
Moreover, investors are looking forward to the release of the Building Permits and Housing Starts report for February on Tuesday. Additionally, the preliminary reading of the Manufacturing Purchasing Manager’s Index (PMI) for March will be released on Thursday. Also, the Services PMI for this month is due on Friday. On the corporate earnings front, Micron (MU), FedEx (FDX), and Nike (NKE) are among the key companies to report results this week.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 4.3%. At the same time, WTI crude oil futures trended higher, hovering near $81.59 per barrel as of the last check, as persistent geopolitical tensions raised supply concerns.
Elsewhere, European indices are expected to open muted today as investors look ahead to the U.S. Fed’s upcoming monetary policy meeting.
Asia-Pacific Markets Ended Higher on Monday
Asia-Pacific indices ended today’s session in the green as investors’ sentiments were lifted by better-than-expected Chinese retail sales and industrial production data for the first two months of 2024.
Hong Kong’s Hang Seng index closed higher by 0.11%. Also, China’s Shanghai Composite and Shenzhen Component indices ended up by 0.99% and 1.46%, respectively. Similarly, Japan’s Nikkei and Topix indices rallied by 2.67% and 1.92%, respectively.
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