US benchmark equity indexes closed mixed Wednesday as markets analyzed the latest housing data, while Tesla's shares remained under pressure for the fifth consecutive day. The technology-heavy Nasdaq rose 0.3% to 19,075.3, while the S&P 500 was flat at 5,956.1. The Dow Jones Industrial Average fell 0.4% to 43,433.1.
Among sectors, consumer staples experienced the largest decline, while technology stocks led the gains. In the realm of economic updates, new-home sales in the US decreased more than anticipated in January, where median prices climbed both sequentially and on an annual basis, as indicated by government data. Experts from Oxford Economics outlined, "Risks to new-home sales and residential investments are skewed to the downside this year due to high mortgage rates, the potential for tariffs on imported building materials from Canada and Mexico, in addition to possible labor supply challenges arising from the Trump administration's immigration policies." This highlights ongoing concerns about the housing market, which remain prevalent amongst potential homebuyers and investors alike. Mortgage applications in the US saw a decline for the second consecutive week as refinancing activities decreased.
Despite this, the 30-year interest rate for conforming loan balances fell to its lowest level since mid-December, according to the Mortgage Bankers Association. In corporate news, Tesla faced a notable downturn, being one of the biggest losers on the S&P 500, falling 4% after an 8.4% decline the previous day.
The electric vehicle manufacturer reported a staggering 50% drop in its January deliveries in Europe when compared to the previous year. This substantial decrease could hinder its projections for delivery growth in 2025, as analyzed by Morningstar. In a dramatic turn, AppLovin's shares plunged 12% on Wednesday after short-selling firms Fuzzy Panda Research and Culper Research made separate allegations about the company, showcasing the risks associated with short selling and its swift impact on stock valuations. However, not all were lows for the day.
Axon Enterprise shares surged by 15%, claiming the title of the top gainer on the S&P 500. Late Tuesday, the company disclosed a stronger-than-expected fourth-quarter earnings report, a testimony to its robust business strategies and performance. Following closely was Intuit, which saw its shares rise by 13%.
The financial technology platform surprised the market with an unexpected increase in its fiscal second-quarter earnings, largely driven by revenue growth in QuickBooks and Credit Karma, exceeding Wall Street's estimates. In commodities, West Texas Intermediate crude oil slipped 0.2% to $68.79 per barrel on Wednesday.
Meanwhile, gold prices climbed 0.5% to $2,932 per troy ounce, and silver also saw a gain of 1.2%, trading at $32.51 per troy ounce, reflecting the ongoing volatility in financial markets. Overall, market dynamics appear fluid, with technology stocks influencing equity trends, while economic signals related to housing and mortgage financing suggest potential headwinds ahead.
Investors should tread carefully, staying informed about market fluctuations and economic indicators that could impact their portfolios moving forward..