TheStreet's JD Durkin brings the latest business headlines from the New York Stock Exchange as markets close for trading on Monday, February 5.
Full video transcript below:
JD DURKIN: I'm JD Durkin, reporting from the New York Stock Exchange. stocks closed today's session in the red. The Dow Jones closed with a drop of 275 points, the Nasdaq closed with a drop of two tenths of a percentage and the S&P closed with a drop of three tenths of a percentage. This comes after Federal Reserve Chairman Jerome Powell indicated that interest rates would likely have to stay high for longer due to persistent inflation. Markets are now pricing in a 14 percent chance that the Federal Reserve will cut rates when it meets in March.
Elsewhere, investors will be keeping an eye on Snap, Spotify and Chipotle's earnings releases on Tuesday.
In other news, for the first time since December, mortgage rates have risen above 7 percent again. According to Mortgage News Daily, the average rate on a 30-year fixed mortgage is now 7.04 percent. Rates saw their biggest one-day jump in more than a year following a stronger-than-anticipated January jobs report as well as a strong monthly manufacturing report.
Those looking to buy a home in 2024 should take special note, as even small changes over the 30-year term can affect monthly mortgage payments by hundreds of dollars.
2023 was one of the worst years for home sales in nearly three decades, with high prices and limited supply making things difficult for potential home buyers. According to the National Association of Realtors, home prices rose again in December, marking the sixth consecutive month of year-over-year increases. The median home price in 2023 was a record $389,800.
So what does this say about the outlook for the rest of the year? Mortgage News Daily COO says: “The future of rates in 2024 depends on the conditionals. If we see more data like last Friday's jobs report, rates will struggle to get back below 7%. But inflation is even higher.” important than the labor market. “If inflation is colder than expected, it could balance the outlook.”
That will be enough for your daily report. From the New York Stock Exchange, I'm JD Durkin of TheStreet.
