Tech concerns, oil prices, inflation weigh on stocks

Stocks have been continuously held back by concerns about interest rates, oil prices and consumer sentiment.MANHATTAN (CN) — Wall Street had choppy trading this week as oil prices continue to rise, consumer sentiment continues to fall and concerns about tech stocks abound.The tech-heavy Nasdaq had its worst day in months on Thursday, driven by jitters over an artificial intelligence bubble. It recouped some of those losses by the closing bell Friday, finishing down just 185 points for the week. The Dow Jones Industrial Average and S&P 500 rose 209 points and fell 36 points, respectively.In the first survey before the midterm election, consumer sentiment has essentially flatlined, according to the University of Michigan. The index remained at 48 points, with the “current conditions” index falling a few points to 46.7 and the “consumer expectations” picking up a few points to hit 48.8.The survey noted sentiment increased slightly among both Democrats and Republicans but fell among independent voters.“Purchasing power continues to dominate consumers views on the economy,” said economist Joanne Hsu, who runs the survey. “Sentiment is now 10% below a year ago and 15% below February, just prior to the Iran conflict.”Interest rate concerns and purchasing power remain the major issues, the survey noted. The number of consumers saying high prices are dragging on their personal finances increased for the fourth straight month, and 85% of survey respondents saying it is a bad time to buy a house.Other data reflect those frustrations. New residential home construction plummeted last month, according to a release from the U.S. Census Bureau. The 5.2% decrease in housing starts followed a similarly bad 5.9% drop in August and was far worse than the 2% increase many had predicted.Economists blamed higher mortgage rates for the decline. “We don’t expect a flood of new supply to come to the resale market, as higher rates send both buyers and sellers to the sidelines,” Matthew Martin, senior U.S. economist at Oxford Economics, wrote in an investor’s note.Martin added that while the housing market is undersupplied, “forward-looking permits data suggest the level of starts will trend sideways and not decline further.”Homebuilder confidence also has fallen further to a 14-year low point, according to the National Association of Home Builders, which industry leaders chalk up to rising interest rates and oil prices. Single-family home permits also are at their lowest level since March 2023.“Mortgage rates have climbed well above 7% in recent weeks, and higher gas prices and inflation have further weakened buyer traffic across much of the country,” NAHB Chairman Bill Owens said in a statement.Anti-immigration sweeps also appear to have had an effect. More than one-third of builders reported immigration enforcement activity that is “causing construction delays and discouraging legal workers from reporting to work.”If oil prices and interest rates continue their upward climb, it doesn’t appear the housing market will get relief any time soon.Barrels of Brent crude have again spiked this week, as Houthi attacks in Saudi Arabia reenergized the specter of energy supply disruption. Since the start of the month, oil has continuously risen in price, with Brent futures ticking up from $100 a barrel to roughly $115 per barrel by week’s end.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads