US benchmark equity indexes recorded intraday losses as traders evaluated the latest economic data. The Nasdaq Composite decreased by 0.8% to 19,024.6 at midday on Wednesday, while the S&P 500 fell by 0.4% to 5,999.2. The Dow Jones Industrial Average also saw a decline of 0.3%, settling at 44,748.6.
Technology stocks experienced the steepest decline, whereas real estate sectors emerged as the winners. As the Thanksgiving holiday approaches, markets will close on Thursday. Recent economic data indicated that US consumer spending growth decelerated in October, aligning with anticipations, while the Federal Reserve’s preferred inflation metric saw a rise on an annual basis, as reported by the government.
"Today's report underscores the ongoing resilience of US consumers with a large income gain and solid consumer spending in October," mentioned TD Economics. "Conversely, inflation has remained robust, eroding real gains." The likelihood of the Federal Open Market Committee reducing its benchmark lending rate by 25 basis points next month surged to 70% on Wednesday, up from 59% the previous day.
Meanwhile, the probability of maintaining rates steady at 4.50% to 4.75% decreased to 30% from 41%. Third-quarter US economic growth remained steady at an initial forecast of 2.8%, although consumer spending experienced an unexpected downward revision as per the Bureau of Economic Analysis's second estimate. Surprisingly, pending home sales in the US saw an increase month-over-month in October, buoyed by gains across all regions of the country, as per the National Association of Realtors.
"Home-buying momentum is building after nearly two years of suppressed home sales," stated NAR Chief Economist Lawrence Yun. In a positive turn, mortgage applications in the US rose for the third consecutive week, primarily driven by purchase activity as rates declined for the first time in more than two months, according to the Mortgage Bankers Association. The intraday US 10-year yield fell by 7.4 basis points to 4.23%, while the two-year rate decreased by 5.1 basis points to 4.20%. In corporate news, Dell Technologies ($DELL) shares dropped nearly 12%, marking the second-worst performer on the S&P 500.
The company reported lower-than-anticipated revenue for its fiscal third quarter, primarily due to a decline in its client solutions division and provided a conservative outlook that concerned investors, according to Morgan Stanley. Autodesk ($ADSK) was identified as the worst performer on the Nasdaq and among the S&P 500, dropping 7.9% intraday Wednesday.
The company, however, had earlier reported better-than-expected fiscal third-quarter results and appointed Janesh Moorjani as its new chief financial officer. In settlement news, Walt Disney ($DIS) has agreed to pay $43.3 million to resolve a lawsuit claiming that its female workers in California were underpaid by $150 million compared to male employees over an eight-year timeframe.
Following this announcement, Disney shares rose by 2.2%, becoming the leading gainer on the Dow. In commodities, West Texas Intermediate crude oil prices decreased by 0.6% to $68.33 a barrel, while gold prices increased by 0.7% to $2,664.70 per troy ounce. In contrast, silver prices fell by 1% to $30.11 per ounce..