US Home Price Growth Slows to Two-Year Low as Consumer Confidence Drops
US home prices rose at the slowest pace in two years, while consumer confidence dropped to a five-month low. Meanwhile, stock indexes traded higher despite looming government shutdown threats and hints of stagflation from a Federal Reserve official.
The S&P CoreLogic Case-Shiller US National Home Price NSA Index reported a 1.82% year-over-year increase in July, marking the slowest pace since June 2020. Economists had expected a 1.9% rise. The MNI Chicago PMI also surprised, falling to 40.6 in September from 41.5, missing expectations.
On the earnings front, S&P 500 companies are now forecast to post a 6.9% growth in Q3 earnings, up from the 6.7% estimated in May. Despite these figures, stock indexes remained positive, with the S&P 500 up 0.25%, the Dow Jones up 0.06%, and the Nasdaq 100 up 0.12%.
Consumer confidence took a dip, with the Conference Board's US Consumer Confidence Index falling to 94.2, its lowest level since April. However, the JOLTS job openings report showed a stronger labor market, with openings rising to 7.227 million in August.
President Trump's administration has previously imposed tariffs on various countries, including China, as part of ongoing trade disputes. The exact institution responsible for implementing these tariffs, such as the U.S. Trade Representative or the U.S. Customs and Border Protection, can be determined by reviewing official announcements. The US government faces a potential shutdown on Wednesday if lawmakers fail to pass a spending bill or continuing resolution by tonight.
