U.S. stock markets under pressure due to the collapse of the real estate sector.

U.S. stock markets are facing a complicated reality as the week comes to a close. Despite showing signs of strength, it has been marred by the release of a discouraging report on the housing market. In New York, stocks began to lose momentum, and the S&P 500 index seems on track to break a six-day winning streak. The situation in the real estate sector has made it clear that economic recovery is a path fraught with obstacles. Housing market data revealed that new home construction in the United States plummeted in July, reaching levels not seen since the post-pandemic period. This decline is a clear indication of weakness in demand, which has led builders to accumulate high levels of inventory. In a market that should be booming, the reality is that the lack of buyers is impacting one of the fundamental pillars of the economy. Economist Jeff Roach from LPL Financial emphasized that residential investment in the third quarter has had a very slow start, suggesting it will not contribute to Gross Domestic Product (GDP) growth during this period. Despite the economic slowdown, Roach anticipates that home prices will remain high, although he expects mortgage rates to start declining as the Federal Reserve implements interest rate cuts. In this context, the Treasury bond market has experienced a rise across its curve, which can be seen as a reflection of the risk aversion that investors are adopting in light of economic uncertainty. Meanwhile, the dollar is on a downward trajectory, marking its third week of losses, a streak not observed in more than five months. The market's reaction to the Federal Reserve's outlook has also been notable. Traders have begun to lower their expectations for quick and significant rate cuts by the central bank, especially after several indicators suggested that the economy continues to show signs of resilience despite the context of high interest rates. This Friday, attention will be focused on a new reading of consumer confidence, a data point that could influence the future direction of the markets. Austan Goolsbee, president of the Federal Reserve Bank of Chicago, has issued warnings about the labor market situation, pointing to indicators that suggest a possible deterioration. Growing concerns about rising unemployment resonate in a context where consumers have shown remarkable resilience, but this may be starting to wane. Market movements have been significant, not only due to the decline in stocks but also because of how investors are adjusting their strategies. The drops in stock prices could reflect a necessary correction, but the context in which they occur also highlights the fragility of economic recovery. The immediate future is uncertain, and the combination of disappointing housing data and concerns about employment could encourage new dynamics in the markets. Attention is focused on how Federal Reserve policies and overall economic conditions will influence consumer confidence and, consequently, spending and investment. In summary, as we move into the next week, investors will be closely analyzing the upcoming economic data. The hope for a robust recovery faces the harsh reality of a weakened housing market and warning signs in the labor market. The balance between economic stability and the risk of slowdown will be key in determining the future direction of financial markets in the United States.