The Dividend Cafe Tuesday - August 19, 2025
Aug 19, 2025
The latest market analysis reveals a mixed performance among major indices, with technology stocks facing a notable sell-off. Insights into the housing market showcase home builders' complicated feelings amidst rising interest rates. Discussions around the Federal Reserve's balance sheet shed light on inflation concerns, while a recap of stronger-than-expected Q2 earnings brings hope for Q3. Looking ahead, potential Fed interest rate cuts and a keen eye on employment figures signal what investors might anticipate in the coming months.
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Market Mixed; Tech Led The Pullback
- Major indices were mixed with the Dow flat-to-up while S&P and Nasdaq sold off due to tech weakness. 10-year yields remained anchored around 4.25%–4.35% despite mixed data.
Housing Starts Surprise, Permits Signal Cooling
- July housing starts surprised higher but new permits dropped, signaling future cooling. Home builder sentiment shows growing weakness driven by rates and affordability.
Builder Sentiment Shows Demand Slide
- Builder sentiment deteriorated with 60% saying demand is lower than expected, up from 50% in May. That weakness reinforces the view that higher rates are depressing new-home demand.