S&P Snap 2-Day Drop – US Market Wrap

US stocks were broadly lower on Wednesday, after wavering for most of the session, as investors pondered the Federal Reserve’s path of rate cuts and digested housing-market data.

The S&P 500 snapped a two-day climb. The Nasdaq 100 closed modestly higher. The 10-year US Treasury yield advanced to around 3.78%. Traders are now turning to earnings from Micron Technology, which posted results after the close.

Data on Wednesday showed sales of new homes in die 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 parsed this information for clues on the economy and housing market.

Traders are still seeking fresh catalysts after last week’s half-point rate cut by the Fed and as growth concerns linger. After China’s latest stimulus failed to ripple beyond Asian markets, investors are also looking to a speech by Fed’s Powell and price data at the end of the week. Gold flirted with another record Wednesday.

Earlier, China’s stocks rallied for a sixth day after the central bank lowered the interest rate charged on its one-year policy loans by the most on record. That followed a wide-ranging stimulus package announced the day before.