As the US benchmark equity indexes approach Monday's close, most indicators are leaning upwards as investors analyze the latest set of economic data that has emerged. The Nasdaq Composite has recorded an uptick of 0.8%, floating at 19,724.8, and the S&P 500 has also seen a rise of 0.5% reaching 5,959.1.
Conversely, the Dow Jones Industrial Average remained relatively stable, showing minimal fluctuation at 42,835.3. When examining sector performances, communication services emerged as the frontrunner for gains, while consumer staples struggled with a significant decline. Looking ahead, US markets are set to close early on Tuesday and will be entirely shut down on Wednesday in observance of the Christmas Day holiday. In a surprising twist, US consumer confidence took a noticeable dip, dropping by 8.1 points down to 104.7 this month, as reported by the Conference Board.
This downturn was largely influenced by a more significant fall in the expectations index, which shrank by 12.6 points to reach a precarious 81.1—hovering just above the 80 mark, which historically signals a looming recession. On the housing front, sales of new single-family homes experienced a boost, increasing by 5.9% on a sequential basis and reaching a seasonally adjusted annual rate of 664,000 in November as per government figures.
This marked a slight deviation from the Bloomberg consensus, which had anticipated sales to reach 670,000. Turning to manufacturing, data revealed that US durable goods orders decreased more sharply than anticipated in November, primarily driven by a slump in transportation equipment orders. In terms of yields, the US 10-year treasury yield climbed by 6.7 basis points to hit 4.59%, while the two-year rate also saw a rise, gaining 3.4 basis points to reach 4.35%. On the commodities front, West Texas Intermediate crude oil saw a minor decline of 0.1%, trading at $69.38 a barrel.
Investors should continue to monitor these developments closely, especially in light of the market's reaction to economic indicators moving forward..