Weekly Financial Update March 29, 2018
April 2, 2018
U.S. stocks had a bumpy, holiday-shortened week, as the S&P 500 rebounded 2.7% last Monday to reclaim about half of last week’s 6.0% decline. The S&P 500’s rebound was short lived, however, as the index fell 1.7% last Tuesday pressured in part by President Trump’s announcement of a potential move to block Chinese investment in “sensitive” U.S. technology companies.
Declines in technology stocks were driven by rising concerns over the prospect of increased regulation and worries about semiconductor demand disruption for autonomous vehicles that resulted in fatal accidents during test programs for Tesla and Uber.
Housing prices in the U.S. continued their ascent amid strong demand and low inventory. The S&P CoreLogic Case-Shiller National Home Price Index rose 6.3% year-over-year in March. Economists expect the pace of price acceleration to slow this year due to home price growth outpacing wage growth, rising mortgage rates, and a reduction in the mortgage interest deduction limit.
To learn more about these topics including the Commerce Department's final estimate of the U. S. fourth quarter Gross Domestic Product growth, click through to read the entire Financial Market Update below.