From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 4/17/2025
U.S. stocks are lower Thursday as investors digest the latest corporate earnings. Both the S&P 500 and Nasdaq opened higher before turning lower, while the DJIA is down over 1.7%. All three major averages were down at least 1.7% yesterday. Investors reacted to comments by Fed Chair Jerome Powell, who said the announced tariff policy could slow the economy and increase inflation, stating there is a high amount of uncertainty.
Looking at economic data today, housing starts dropped 11.4% to an annual rate of 1.324 million, missing expectations of 1.420 million. Single-family starts were down 14.2% to an annual rate of 940,000, the lowest level since July. Building permits rose by 1.6% to an annual rate of 1.482 million.
Elsewhere, initial jobless claims fell to 215,000, below expectations of 225,000 and the lowest level in two months. Initial claims were at 224,000 last week. Continuing claims fell 41,000 to 1.885 million.
U.S. Treasury yields are steeper this morning this morning, with the 2-year Treasury down 1.7 basis points to 3.77%, the 5-year Treasury yield down 0.2 basis points to 3.91%, and the 10-year Treasury yield up 1.3 basis points to 4.29%. Shorter-term advance rates are higher today, while the rest of the curve is lower.
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