Market Recap: S&P 500 Falls as Investors Weigh Fed Rate Cuts and Housing Data

The S&P 500 fell on Wednesday as investors grappled with the Federal Reserve’s rate cuts and housing-market data. The Nasdaq 100 closed slightly higher, while the 10-year US Treasury yield hovered around 3.79%. The Bloomberg Dollar Spot Index also rose after a previous drop.

Investors were closely watching earnings reports from Micron Technology Inc. and Jefferies Financial Group Inc., with Micron shares surging over 10% in postmarket trading after a strong revenue forecast. Nvidia Corp. also saw a rise in shares after the closing bell.

Data on new home sales in the US showed a decline, but mortgage rates have dropped for eight consecutive weeks, boosting demand for home purchases. Skylar Olsen, chief economist at Zillow, noted that buyers are catching on to lower mortgage rates.

Traders are now looking for new catalysts following the Fed’s recent rate cut, with attention on a speech by Fed Chair Jerome Powell and upcoming price data. Fed Governor Adriana Kugler expressed support for additional rate cuts if inflation continues to ease.

In global markets, China’s stocks rallied for a sixth day after a significant interest rate cut by the central bank. However, fading optimism over the impact of China’s stimulus measures led to lower Latin American currencies.

In Europe, there are expectations for the European Central Bank to reduce rates next month amid a darkening economic outlook. The Czech Republic indicated a cautious approach to further monetary easing.

Key events to watch this week include ECB President Christine Lagarde’s speech, US jobless claims and durable goods data, and China industrial profits. Major moves in markets included a decline in the S&P 500, a rise in the Nasdaq 100, and a fall in cryptocurrencies like Bitcoin and Ether.

Overall, investors are closely monitoring economic data and central bank actions for clues on the future direction of markets.