U.S. stocks lost momentum on Wednesday after markets hit record highs as investors looked to fresh data for clues on the health of the economy and the chances of another big interest rate cut.
The Dow Jones Industrial Average (^DJI) pared earlier gains to fall about 0.6%, while the S&P 500 (^GSPC) also slipped into negative territory, down about 0.1% following record closes for both major indexes. The technology-heavy Nasdaq Composite (^IXIC) remained the only major index in the green, up about 0.1%.
Now the question is whether the U.S. economy could find itself in a recession, with concerns raised by a surprisingly weak reading of consumer confidence. The debate is over whether the Federal Reserve cut interest rates by a larger-than-usual 0.5% in response to the slowing economy and what further distress it might mean for another deep rate cut expected.
Read more: What the Fed’s rate cut means for bank accounts, CDs, loans, and credit cards
On the data front, new home sales rose. Decreased in August After a sharp increase the previous month as sky-high mortgage rates and expensive prices kept buyers mostly on the sidelines.
Still, mortgage applications jumped to the highest level since 2022, according to MBA data released before the bell. The growth was driven by homeowners seeking to refinance loans as rates fell.
But the spotlight is firmly on Thursday’s second-quarter GDP reading and Friday’s crucial reading of the personal consumption expenditures index — the Fed’s preferred gauge of inflation.
Speaking of the central bank, the parade of Fed spokespeople continues with an appearance by Fed Governor Adriana Kogler, whose comments will also be scrutinized for clarity on the size and pace of upcoming rate cuts when she appears later Wednesday.
He lives4 updates
Elmore Leonard writes for Bjournal, covering news, politics, business, technology, sport, entertainment, and lifestyle. He focuses on clear, reliable reporting and useful information, helping readers stay informed about current events, emerging trends, and stories that matter.
More Stories
AI Agent Breaches Startup Systems During Internal Test, OpenAI Reports
Data Center Investments Come Under Scrutiny as Big Tech Faces Growing Questions
OpenAI Files for U.S. IPO as AI Giants Race Toward Public Markets