S&P 500 falls back under 5,100 as Big Tech leads stock slide

Homebuilder stocks declined on Monday as the NAHB/Wells Fargo Housing Market Index remained unchanged in April at 51, signaling that more builders view conditions as good rather than poor. The flat reading suggests potential for demand growth, but buyers are hesitant due to uncertainty over interest rates. Lennar, Pulte, and Toll Brothers saw drops of over 1%, while the SPDR S&P Homebuilders ETF fell 0.3%. Prospective buyers and sellers are staying put amid high home prices and limited housing stock. The Federal Reserve is expected to announce rate cuts later in the year, with mortgage rates expected to moderate in the second half of 2024. Mortgage rates have risen slightly since the beginning of the year, with the average rate on a 30-year fixed mortgage reaching 6.88%. Builders have reduced home price cuts slightly in April, with fewer using sales incentives compared to the previous month.