Stocks spent the majority of Monday bouncing between positive and negative territory before eventually ending lower as investors took profits following last week's outsized gains.
At the close, the tech-heavy Nasdaq Composite was down 1.1% at 11,196, the broader S&P 500 Index was off 0.9% at 3,957, and the blue-chip Dow Jones Industrial Average had slipped 0.6% to 33,536.
The choppy price action came amid mixed messages from Federal Reserve officials. On one hand, Fed Governor Christopher Waller said over the weekend that "we've still got a ways to go" before the central bank can stop raising interest rates.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
On the other hand, today's comments from Fed Vice Chair Lael Brainard were much more dovish. "I think it will probably be appropriate soon to move to a slower pace of rate increases," Brainard said earlier in an interview with Bloomberg News. This comes after the Fed earlier this month issued its fourth straight 75 basis point rate hike, as well as last week's inflation update that showed consumer price growth eased in October.
"Inflation data will remain center stage this week with the producer price index read [due out tomorrow morning], along with retail sales and earnings, and some more clarity on the midterm election results," says Chris Larkin, managing director of trading at E*Trade. While the House is still up for grabs, it seems we could be headed to a divided government, which may be welcomed news for the market. A divided government may be more market-friendly than one controlled entirely by the Democratic party, since the latter was more likely to result in government spending programs with the potential to feed inflation and keep the Fed on a hawkish path."
Housing Stocks to Watch in a Tough Market
Also in focus this week will be some updates on the housing market, with housing starts and building permits for October set for release Thursday morning. Both are expected to decline as soaring mortgage rates cool demand.
While there's certainly pain ahead for many in the housing industry, including homebuilders, investors still have some options. Single-family rental homes, for instance, are poised to benefit from strong industry fundamentals, says Credit Suisse analyst Sam Choe. "The overall affordability picture indicates renting continues to be the more attractive option vs. owning a home, contributing to strong demand for rentals and good leasing momentum late into peak leasing season," Choe adds.
Here, we explore five top-rated housing stocks set for long-term growth. The names featured here all have exposure to single-family rental homes and could continue to benefit from market strength. Check them out.
-
These Stocks Dipped in 2025. Do They Have Value?If you are looking to add new long-term positions to your portfolio, as you should, this is the time to examine stocks that the market shuns.
-
Striking Gold (or Gas): A Financial Pro Unpacks the Nuances of Energy InvestingInvesting in the energy industry, particularly oil and gas, involves understanding the facts about how projects generate returns through cash flow and long-term asset building, while also being aware of the risks.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
Stocks at New Highs as Shutdown Drags On: Stock Market TodayThe Nasdaq Composite, S&P 500 and Dow Jones Industrial Average all notched new record closes Thursday as tech stocks gained.
-
S&P 500 Sees New Highs on Shutdown Day: Stock Market TodayMost of its components were in the red, but the S&P 500 Index still managed to hit a new intraday all-time high.
-
Government Shutdown to Delay Data, Including Key Jobs ReportWhile government shutdowns typically don't impact stock returns, they can delay the release of key economic data – including the monthly jobs report.
-
Stocks Close September on a High Note: Stock Market TodayA little bit of late risk-on behavior was enough to lift stocks into the green on the last day of September.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
Investors Take Stock of Shutdown Talk: Stock Market TodayWhether we'll have a Jobs Friday this week depends on if we have a government shutdown in Washington.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
