The broader market rose on Tuesday as shares of market bellwether Nvidia
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
On the Economic Front:
Housing Prices rose 6.3% in April year-over-year, according to the S&P CoreLogic Case-Shiller National Home Price Index released Tuesday, even as mortgage rates and housing supply also increased during the month.
Bank of America economists led by Michael Gapen said in a Monday note that the housing market is "stuck" and is unlikely to recover until at least 2026 as a variety of factors impact affordability.
"After a surge in housing activity during the pandemic, it has since retreated and stabilized," Gapen wrote. "We view the forces that have reduced affordability, created a lock-in effect for homeowners, and limited housing activity will remain in place through our forecast horizon."
Consumer Confidence ticked lower in June, The Conference Board reported Tuesday, with the headline index lowering to 100.4 from May's print of 101.3. Beneath the headline, the Present Situation Index rose to 141.5, while the Expectations Index slipped to 73.
"Confidence pulled back in June but remained within the same narrow range that's held throughout the past two years, as strength in current labor market views continued to outweigh concerns about the future," said Dana Peterson, chief economist at The Conference Board.
FedWatch:
Federal Reserve Governor Michelle Bowman said Tuesday in prepared remarks for a speech in London that she is open to raising interest rates if inflation remains stubborn heading into the second half of the year.
"Should the incoming data indicate that inflation is moving sustainably towards our 2 percent goal, it will eventually become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive," Bowman said. "However, we are still not yet at the point where it is appropriate to lower the policy rate."
Separately, Fed Governor Lisa Cook on Tuesday said she expects inflation rates to remain stable throughout the rest of the year but then easing in 2025.
"With significant progress on inflation and the labor market cooling gradually, at some point it will be appropriate to reduce the level of policy restriction to maintain a healthy balance in the economy," Cook told the Economic Club of New York. "The timing of any such adjustment will depend on how economic data evolve and what they imply for the economic outlook and balance of risks."
In the News:
Microsoft
"The European Commission has informed Microsoft of its preliminary view hat Microsoft has breached EU antitrust rules by tying its communication and collaboration product Teams to its popular productivity applications included in its suites for businesses Office 365 and Microsoft 365," the European Commission said in a statement.
Amazon
For Wednesday:
Market participants will react to more housing market data for May as investors look ahead towards May's personal consumer index reading set to release Friday morning.
