Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 20, 2025.
Brendan McDermid | Reuters
The S&P 500 traded into the green on Thursday after some solid housing data assuaged some concerns about the U.S. economy falling into a recession.
The broad market index rose 0.5%, and the Nasdaq Composite gained 0.7%. The tech-heavy index’s rise was supported by gains in megacap technology stocks like Meta Platforms and Amazon, which advanced about 4% and more than 1%, respectively. The Dow Jones Industrial Average traded 217 points higher, or 0.5%.
New economic data released Thursday showed that economic worries might actually be overblown. Data from the National Association of Realtors showed that sales of previously owned homes in February rose 4.2% from January, while industry analysts had expected a 3% drop. Additionally, jobless claims were only up slightly last week while layoffs remain low.
The data comes after Fed Chair Jerome Powell said the economy is “strong overall” and that he believes its policy is in a “good place” to react to any signs of weakness in economic data. He also labeled the potential effect of tariffs on inflation as likely being short-lived or transitory.
On Wednesday, the Fed kept a forecast for two rate cuts this year and held the federal funds rate in a range of 4.25% to 4.5%. However, the central bank also raised its inflation outlook and lowered its economic growth projection. Traders largely expect the Fed to not make any moves, however, before officials see the impact of tariffs.
Stocks rebounded Wednesday following the Fed decision, regaining some ground after the past month’s sharp decline. The Dow rose 0.9% and the S&P 500 added just over 1%. The Nasdaq gained 1.4%, but is still down 11% in the past month, firmly in a correction.
The S&P 500, which briefly slipped into correction territory last week, is now more than 7% off its record high. Over the past month, it’s declined nearly 7%.
As White House tariff policies rattled markets earlier this month, President Donald Trump said the economy could see “a period of transition.” A tariff exemption on select Canadian and Mexican imports expires April 2.
