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Pending Home Sales Rise 0.8% In February, SP500 Climbs Above 4000

By:
Vladimir Zernov
Updated: Mar 29, 2023, 14:35 GMT+00:00

The better-than-expected report may provide additional support to stocks.

SP500

In this article:

Key Insights

  • Pending Home Sales increased by 0.8% month-over-month in February. 
  • Pending Home Sales are rising for the third month in a row, but the trend may change due to the recent shift in Fed policy outlook. 
  • SP500 continues its attempts to settle above the 4000 level after Pending Home Sales data. 

Pending Home Sales Exceed Analyst Expectations

On March 29, U.S. released Pending Home Sales report for February, which indicated that Pending Home Sales increased by 0.8% month-over-month, compared to analyst consensus of -2.3%. On a year-over-year basis, Pending Home Sales declined by 21.1%.

Pending Home Sales are rising for the third month in a row. However, it remains to be seen whether this trend will be continued in the upcoming months. Previously, buyers were afraid that Fed may push the federal funds rate towards the 6% level.

However, Fed policy outlook has changed in March due to the crisis in the regional banks sector. Thus, buyers may decide to wait for a few months in hope that interest rates would start to fall.

SP500 Tries To Settle Above The 4000 Level

SP500 continues its attempts to settle above the important 4000 level after the release of the Pending Home Sales data. The housing market has shown signs of improvement in recent months, which is bullish for stocks.

U.S. Dollar Index is moving towards the 102.50 level after an unsuccessful attempt to settle above 102.75. The better-than-expected Pending Home Sales report did not change the general bearish sentiment towards the American currency.

Gold  remains stuck near the $1965 level as traders focus on rising Treasury yields. The Pending Home Sales report did not have a material impact on the dynamics of gold markets.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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