A significant drop in new home sales
In October, sales of new homes in the United States experienced a surprising drop, recording a 17.3% decline on a monthly basis. This figure is significantly different from analysts’ expectations, who expected a smaller decrease of 1.8%. In addition, the previous figure, revised from +4.1% to +7%, further highlighted the seriousness of the situation. This decline is particularly worrying in an already fragile economic environment, where consumer confidence and real estate market dynamics are crucial for economic recovery
.
Market reactions and economic uncertainty
The market reaction was immediate, with Wall Street opening in a climate of uncertainty. The Dow Jones fell after hitting a record, while the S&P 500 reached a new intraday high. Tensions are amplified by recent statements by former President Donald Trump regarding new trade tariffs against Mexico, Canada and China. Investors are waiting for minutes from the Federal Reserve, hoping to get guidance on future interest rates, which could further influence the housing market and home sales
.
The WIIT case and the stock performance
In a context of economic uncertainty, companies are also trying to adapt. WIIT, for example, recently announced the purchase of 5,000 treasury shares worth 99,600 euros, as part of a buyback program. Since the beginning of this initiative, the company has acquired a total of 30,900 shares, corresponding to 0.11% of the share capital. Despite these transactions, the stock fell by 0.60% in Piazza Affari, closing at 19.74 euros. This scenario highlights how even the strongest companies are facing significant challenges in a
volatile market.
Implications for the semiconductor industry
Another aspect to consider is the recent downsizing of funding for Intel, which has been reduced to 7.86 billion dollars through the U.S. CHIPS and Science Act, compared to the 8.5 billion originally planned. This support is critical to boosting semiconductor production and advanced packaging projects in the United States, but reduced funding could have significant repercussions on the industry. Intel, in fact, has planned substantial investments in the country, and a decrease in funding could hinder growth and innovation in a sector already
under pressure.