Stocks generally tumbled on Tuesday on a backdrop of weaker housing data despite uplifting news on China loosening its Covid-19 restriction. While the Dow buckled some gains, the S&P 500 and Nasdaq trended downwards throughout the session, and Apple hit a fresh 52-week low of $128.72.
We are seeing Tesla hurting, too, as news of reduced production in its Shanghai factory will extend to January 2023. This evoked fear of diminishing demands for its product and sent the stocks on a downward spiral.
🎲Home prices moderating🧸
The latest data showed that US home prices have fallen by 0.5% in October from a month ago. It is the fourth consecutive month that prices reflect a fall. This is good news for the economy, given that home prices represent a significant component of the CPI and will help send inflation falling harder in 2023.
Falling home prices should not come as a surprise, given the mortgage rate at an elevated level. This deterred prospective buyers from entering the market.
💸What’s moving the market?🕹
There are a few themes that will be in focus. First, a rise in jobless claims should happen soon, given the progressive retrenchment news we are hearing as shares hovered around 220,000 for the past two months.
Recession talk is gaining traction too, and that always sends a chill to investors. The S&P 500 had fallen more than 20% since the Fed began its monetary tightening policy through aggressive rate hikes and reducing its balance sheet.
📮What’s on the menu today?📖
At 11 pm, we will have Pending Home Sales (MoM), which we should expect a decline of 0.8% after falling 4.6% in the prior period.
It is 28 December, Wednesday, at 8.55 am in Singapore and 7.55 pm in New York. Pika World wishes everyone a good break, and we hope for a splendid closing towards the end of 2022.
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All is well.