"Stock Market Retreats as Bond Yields Rise: S&P 500 and Nasdaq Erase Gains"

Homebuilder stocks fell as the NAHB/Wells Fargo Housing Market Index remained flat in April, indicating potential demand growth but buyer hesitation due to uncertainty over interest rates. The flat confidence level reflects high home prices and limited housing stock, exacerbated by slightly higher mortgage rates, with the average 30-year fixed rate rising to 6.88%. Builders also pulled back on cutting home prices, while the use of sales incentives ticked down in April. This comes as investors adjust to higher rates following an inflation print, prompting a scaling back of projected rate cuts, although the Federal Reserve is still expected to announce future cuts later this year.