The S&P 500 hovered near flat on Thursday as investors struggled to build on previous gains, while the Nasdaq Composite fell about 0.2% and the Dow Jones Industrial Average inched up 91 points, or roughly 0.2%.
New economic data suggests recession fears may be overblown. The National Association of Realtors reported that February sales of previously owned homes rose 4.2% from January, defying expectations of a 3% drop. Jobless claims increased slightly, and layoffs remained low, easing some market concerns.
Fed Chair Jerome Powell described the economy as strong overall and indicated that the impact of tariffs on inflation is likely to be short-lived. Analyst Sam Stovall, CFRA Research’s chief investment strategist, commented, Bull markets don’t die of old age. They die of fright. He added that many investors expect a rate cut in June.
Following Wednesday’s Fed meeting, which forecast two rate cuts this year while holding the federal funds rate at 4.25% to 4.5%, traders remain cautious amid ongoing tariff policy uncertainty.
This article first appeared on GuruFocus.
