U.S. stocks fell on Friday as weak housing data intensified worries about the economy’s health. The National Association of Realtors reported that sales of existing homes fell more than expected in March, adding to concerns about the housing market slump and its impact on the broader economy.
Market Performance
The Dow Jones Industrial Average closed down 1.2%, while the S&P 500 lost 1.5%. The Nasdaq Composite fell 1.8%.
Sector Impact
Financial stocks were among the hardest hit, as investors worried about potential losses related to mortgage-backed securities. Homebuilder stocks also declined sharply.
Analyst Commentary
“The housing data is clearly weighing on the market,” said John Smith, chief investment strategist at ABC Investments. “Investors are becoming increasingly concerned that the housing slowdown could trigger a recession.”
Economic Outlook
The weak housing data has led some economists to lower their forecasts for economic growth in the coming quarters. The Federal Reserve is expected to closely monitor the situation as it considers future interest rate policy.
- Existing home sales fell more than expected.
- Financial and homebuilder stocks declined.
- Economic growth forecasts are being revised downward.
