Major US stock indexes have declined markedly, the reason for which was disappointing data on consumer confidence and sales of new homes, as well as the collapse of technological sector stocks. In addition, the focus of investor attention were statements by Fed Chairman Jerome Powell.

The Conference Board report showed that the US consumer confidence index deteriorated significantly in June and now stands at 121.5, the lowest since September 2017. Experts expected that the index will decrease only to 131.2. In the Conference Board pointed to the growth of trade tensions as the culprit for the loss of confidence. The current situation index, based on consumers ’current business and labor market conditions, fell from 170.7 to 162.2, while the expectations index, based on short-term consumer forecasts for income, business and labor market conditions, declined from 105.0 to 94.1.

Meanwhile, the Commerce Department reported that sales of new homes fell in May by 7.8 percent to an annual level of 626,000, after falling 3.7 percent to a revised level of 679,000 in April. It was expected that sales of new homes to 680,000 from 673,000, which were originally reported in the previous month.

As for Powell's speech, he noted that the Fed is studying whether uncertainty requires lowering interest rates. “Counter-currents, such as trade, concerns about global economic growth have come to the fore, heightening uncertainty. We will track economic data, act expediently to support economic growth, ”Powell said, adding that the outlook had changed since the beginning of May, when the Fed did not see any serious reasons for changing interest rates.

Most of the components of DOW finished trading in the red (23 of 30). The outsider was Microsoft Corp. (MSFT; -3.46%). The growth leader was Walgreens Boots Alliance (WBA; + 2.13%).

All sectors of the S & P recorded a decline. The largest drop was shown by the technology sector (-1.9%).

At the time of closing:

Dow 26,548.64 -178.90 -0.67%

S & P 500 2,917.45 -27.90 -0.95%

Nasdaq 100 7,884.72 -120.98 -1.51%

S&P reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, rose 2.5 percent y-o-y in April, following a revised 2.6 percent y-o-y increase in March (originally a climb of 2.7 percent m-o-). That was the smallest annual advance in house prices since August 2012.

Economists had expected an advance of 2.6 percent y-o-y.

Las Vegas (+7.1 percent y-o-y), Phoenix (+6.0 percent y-o-y) and Tampa (+5.6 percent y-o-y) recorded the highest y-o-y gains in April.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, was up 3.5 percent y-o-y in April, down from 3.7 percent y-o-y in the previous month.

“Home price gains continued in a trend of broad-based moderation,” says Philip Murphy, Managing Director and Global Head of Index Governance at S&P Dow Jones Indices. “Year-over-year price gains remain positive in most cities, though at diminishing rates of change.”

“The national average 30-year fixed mortgage rate rose from below 4% in late 2017 to briefly reaching almost 5% by the latter part of 2018. Peak YOY changes in the 20-City Composite coincided with the upward turn in mortgage rates during the first quarter of 2018. In 2019, mortgage rates reversed course again and the 30-year fixed mortgage rate is again under 4%, yet the YOY house price moderation that coincided with the 2018 uptick in rates has not changed course.”

U.S. stock-index futures were little changed on Tuesday as investors awaited commentary from the Fed Chair Jerome Powell (17.00 GMT), which could provide more clarity on interest rates.

Global Stocks:

Wall Street. Stocks before the bell

(company / ticker / price / change ($/%) / volume)

McDonald's (MCD) initiated with an Outperform at Credit Suisse; target $230

Starbucks (SBUX) initiated with an Outperform at Credit Suisse; target $92

DuPont (DD) resumed with a Neutral at Monness Crespi & Hardt