In a recent analysis, US benchmark equity indexes exhibited mostly positive movements throughout the trading session, reflecting investor reactions to the latest economic data. As of midday Tuesday, the Nasdaq Composite had increased by 0.6%, reaching a milestone of 18,073.1. Meanwhile, the S&P 500 saw a modest rise of 0.2%, closing at 5,728.9.
The Dow Jones Industrial Average remained relatively stable, showing little change at 42,125.8. Notably, the materials sector emerged as the frontrunner in gains, whereas the financial sector recorded the most significant drop. Focusing on economic indicators, US consumer confidence took a downturn, falling to 98.7 in September from a previous high of 105.6 just a month earlier, as reported by the Conference Board.
This considerable decline marks the largest decrease since August 2021, according to Conference Board Chief Economist Dana Peterson. Peterson highlighted that consumers are experiencing a more pessimistic outlook regarding future labor market conditions and business prospects. In terms of real estate, US home prices reached a record high for the 14th consecutive month in July.
However, the growth rate on an annual basis decelerated to its slowest pace for 2024, as noted by the S&P Global division, S&P Dow Jones Indices. The Federal Housing Finance Agency also reported a slight increase of 0.1% in home prices on a seasonally adjusted basis for July, while June's previously reported decline was adjusted to a flat rate.
Bloomberg's survey had anticipated a 0.2% rise. On the bond market front, the yield on the US 10-year Treasury note climbed one basis point, reaching 3.75% intraday. Conversely, the two-year yield decreased by 1.9 basis points, settling at 3.56%. In recent monetary policy developments, the Federal Reserve announced a reduction in its benchmark lending rate by 50 basis points.
Fed Governor Michelle Bowman expressed her preference for a more conservative 25-basis-point cut, citing persistent inflation concerns. In her remarks during a Kentucky Bankers Association event, she stated, "I preferred a smaller initial cut in the policy rate while the US economy remains strong and inflation remains a concern, despite recent progress." On a separate note, Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari remarked that the Federal Open Market Committee (FOMC) had made an appropriate decision during their last meeting, although any future adjustments to policy will likely depend on incoming economic data. In the commodities sector, West Texas Intermediate crude oil prices increased by 1.5%, reaching $71.41 per barrel during the trading session. From the corporate landscape, shares of PDD Holdings ($PDD) jumped by 10%, marking the highest performance on the Nasdaq.
Nvidia ($NVDA) followed closely as the second-best performer on the Nasdaq, as well as making notable gains of 4.5% on the S&P 500. Visa ($V) is preparing to confront a lawsuit from the Justice Department alleging illegal monopolization of the debit card market in the US. This news led to Visa shares dropping by 4.6%, making it the poorest performer on the Dow and one of the top decliners on the S&P 500. Additionally, companies such as KB Home ($KBH), Progress Software ($PRGS), and Worthington Enterprises ($WOR) are set to release their latest quarterly financial results following the market's closure on Tuesday. In the precious metals market, gold prices rose by 0.9%, reaching $2,676.60 per troy ounce, while silver saw a remarkable increase of 4.2%, hitting $32.39 per ounce..