(Bloomberg) — US stocks are drifting lower as investors weigh the Federal Reserve’s path of rate cuts and await Micron Technology Inc.’s earnings for details on artificial intelligence demand.
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The S&P 500 fell after struggling for direction earlier in the session. The Nasdaq 100 swung between modest gains and losses. The 10-year US Treasury yield is around 3.77%. The Bloomberg Dollar Spot Index rose after a 0.5% drop on Tuesday.
Data on Wednesday showed sales of new homes in the US fell last month. A separate set of data indicated that mortgage rates have dropped for eight consecutive weeks, spurring demand for purchasing a home. Investors are parsing this information for clues on the economy and housing market.
“One of the things we’re watching is buyers catching up to the idea that mortgage rates are lower and that the break we’ve recently gotten in mortgage rates might be a lot of what we are expecting to get,” Skylar Olsen, chief economist at Zillow, said on Bloomberg Television. “Mortgage rates are not expected to go too much lower from here because they moved early with that anticipation.”
Traders are still seeking fresh catalysts after last week’s half-point rate cut by the Fed and as growth concerns linger. Earnings could be that catalyst for some investors — with Micron expected to report after the market close. Financials are also in focus, with earnings from early reporter Jefferies due later.
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