US Stocks Attempt Recovery Amidst Federal Reserve’s Hawkish Stance

US stocks are attempting a cautious recovery on Tuesday, navigating a landscape fraught with negative pressures. These include a confluence of lackluster economic data and recent statements from the Federal Reserve, signaling a potential inclination to maintain current interest rate levels for an extended period.

Adding to investor concerns, the Conference Board’s Consumer Confidence Index experienced a notable decline, falling to 92.9 points, a drop of approximately seven points. This figure fell short of market expectations, which had anticipated a reading of 94.00 points.

Furthermore, the current economic conditions component of the Richmond Federal Reserve’s manufacturing survey plummeted to -4.00, significantly underperforming market projections of a rise to 1.00.

In contrast, US new home sales offered a glimmer of positivity, rising by 1.8% in February to reach 676,000 units. However, this figure still fell slightly below market forecasts of 680,000 units.

Adding to the market’s uncertainty, Federal Reserve Governor Adriana Kugler stated on Tuesday that she favors maintaining interest rates at their current levels “for some time.” This stance is supported by recent US economic data, which indicates a slowdown in both economic performance and inflation progress.

In terms of market performance, the Dow Jones Industrial Average dipped slightly to 42,566 points, shedding approximately 16 points or less than 0.1%. The S&P 500, however, managed a marginal gain, rising to 5,771 points, an increase of roughly four points or less than 0.1%. The tech-heavy Nasdaq Composite also saw modest growth, adding around 55 points or 0.4%.