Markets moved lower on Wednesday and Thursday as traders digested the Fed's latest policy move, in which it kept rates unchanged, but indicated that they will remain higher for longer. home sale price advanced 3% Y/Y in August, the largest annual increase since October, while home purchases in August were scrapped at the highest rate in nearly a year. And that will keep prices high because buyers are duking it out for a limited supply of houses," added Chen Zhao, lead of Redfin's ( RDFN) economics research. "As long as rates remain high, homeowners will be reluctant to sell. "High mortgage rates are clearly taking a toll on builder confidence and consumer demand, as a growing number of buyers are electing to defer a home purchase until long-term rates move lower," said Robert Dietz, chief economist, National Association of Home Builders. Housing starts plunged 11.3% month-over-month in August to 1.283M, marking the lowest level since June 2020. Besides Arm's and Instacart's debut, marketing automation firm Klaviyo ( KVYO) priced its IPO at the top of its marketed range, ending its first session more than 9% higher. SA analyst The Asian Investor believes traders are overpaying for Arm's revenue potential, a concern shared by Wall Street analysts. The initial enthusiasm has since faded, with Arm declining in five consecutive sessions. Instacart's rally came close on the heels of Arm's ( ARM) IPO, in which its shares jumped 25% in its first day of trading. Grocery delivery firm Instacart ( CART) closed up 12.3% in its market debut on Tuesday, ending the session with a valuation of about $11.5B. For the week, the S&P tumbled 2.9% in its biggest loss since mid-March, when the collapse of Silicon Valley Bank sparked a sharp selloff, while the Dow Jones average slipped 1.9% and the Nasdaq Composite closed 3.6% lower. The yield on the 10-year Treasury note climbed 12 basis points on the week to 4.44%, slipping a bit on Friday after surging Thursday to its highest level since October 2007, as the Fed projected interest rates would remain higher for longer. The Fed chair also highlighted that economic activity had been stronger than all expectations. Moreover, Powell at the post-decision conference said that a soft landing was not a baseline expectation, which further shook investor confidence. However, the latest dot plot - a summary of economic and rate projections - signaled one more rate hike this year along with fewer rate cuts in 2024. The Fed's monetary policy committee on Wednesday chose to keep rates steady, as widely anticipated. The central bank was the main event of the week. Treasury yields surging to 16-year highs and investors digesting hawkish revisions from the Federal Reserve. Stocks posted their fourth straight daily loss Friday to end a rocky week that saw benchmark U.S.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |