Stock Market Update

[BRIEFING.COM] The broader market has held its higher lines after the Fed released its March Beige Book at the bottom of the hour. The report showed that overall economic activity grew modestly in most Districts, supported by manufacturing and financial services, while consumer spending and residential real estate remained constrained by affordability and uncertainty. Labor markets were mostly stable with modest wage gains, and prices continued to rise moderately, driven by higher input costs and tariffs, though some firms faced pressure from price-sensitive customers. Currently, the S&P 500 (+0.94%) is in second place.

Overall, economic expectations were optimistic, with most Districts expecting slight to moderate growth in the coming months.

• Employment: Employment levels were generally stable in recent weeks as seven of the twelve Districts reported no change in hiring. Contacts in several Districts cited rising nonlabor input costs, softer demand, or uncertainty about overall economic conditions as reasons for flat or lower employment levels.
• Prices: Prices increased moderately in recent weeks, with eight Districts reporting moderate price growth and four seeing slight or modest increases. Many Districts reported that costs rose across several nonlabor inputs, including insurance, utilities and energy, and metals and other raw materials. Nine Districts mentioned that tariffs contributed to increased costs. Some firms continued to pass tariff-related cost increases through to their customers, and others began to do so after having absorbed previous increases.

Currently, the yield on the benchmark 10-yr Treasury note is little changed post Beige Book, up about one basis point at 4.083%.