The housing market is showing signs of strength as new residential home sales surged in March, surpassing expectations. According to the Commerce Department, sales of single-family homes totaled 693,000 for the month, a significant increase from the previous month and higher than the estimated figure. The median sales price also saw a jump, reaching $430,700, the highest level since August 2023.
The boost in home sales can be attributed to declining mortgage rates during the month, which prompted more buyers to enter the market. Despite a dip in January, the housing market rebounded strongly in March, with an 8.8% gain in sales.
In other economic news, the PMI indexes for April came in lower than expected, signaling a potential slowdown in U.S. economic growth. Manufacturing and services activity hit multi-month lows, with new orders dropping for the first time in six months. Companies responded by scaling back employment for the first time in almost four years, indicating a cautious approach to future growth.
On the corporate front, Spotify saw a 13% jump in its shares after beating earnings expectations for the first quarter. The streaming music company reported strong revenue and earnings per share, exceeding analyst forecasts.
Meanwhile, U.S. crude oil prices fell to their lowest level since March, dipping below the 50-day moving average. Traders have bid down prices amid easing tensions between Iran and Israel, as fears of a wider conflict have subsided.
Overall, the stock market opened higher on Tuesday, with Wall Street focused on upcoming tech earnings. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw gains shortly after the opening bell.
In international markets, European stocks opened higher, with the FTSE 100 hitting a record high. In Asia, Chinese bubble tea company Chabaidao tumbled 30% in its Hong Kong trading debut, reflecting investor caution in the region.
Looking ahead, investors are awaiting the release of March new home sales data later today, which is expected to show a further increase in the housing market. Stock futures opened little changed, indicating a cautious start to the trading day.
