Stock Market Update

[BRIEFING.COM] The broader market is still mixed after the Fed released its April Beige Book at the bottom of the hour. The report showed that overall economic activity increased at a slight to modest pace across most Federal Reserve Districts, with some regions reporting little change or modest declines. Manufacturing rose modestly and banking conditions were steady with stable to slightly higher loan demand, while consumer spending edged up despite weather and fuel cost pressures but showed continued financial strain among lower-income households. Housing softened amid higher rates and uncertainty, commercial real estate improved in industrial and data center segments, and energy activity rose slightly as oil prices increased though producers remained cautious. Business outlooks varied amid widespread uncertainty about future conditions. Currently, the S&P 500 (+0.57%) is firmly in second place.

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

• Employment: Employment was largely stable with modest growth, as cautious hiring, improved labor supply, and selective wage pressures in healthcare and skilled trades were partly offset by AI-driven productivity gains reducing the need for additional hiring.
• Prices: Price growth remained mostly moderate, but rising input costs led by energy, tariffs on metals, and higher insurance and healthcare expenses generally outpaced selling prices, compressing margins across many Districts.

Currently, the yield on the benchmark 10-yr Treasury note is little changed post Beige Book, up about three basis points at 4.288%.