Wall Street indexes were flat to higher Wednesday as tech stocks stabilized and investors awaited a key inflation report.
Nvidia, the chip leader, fell 1.1% after rising, dragging the Philadelphia SE Semiconductor index down 0.5%.
Despite sector volatility, the S&P 500 tech index gained 0.3%, contributing to Wall Street’s record highs amid sector comparison concerns.
“It’s been four days in a row that the Dow and Nasdaq have gone in opposite directions, highlighting the level of indecision we’re seeing,” said Ryan Detrick, chief market analyst at the Carson Group.
Detrick noted that improved earnings and inflation data may prompt a shift from tech to underperforming sectors.
Apple’s stock rose 2.4% after Rosenblatt upgraded it to “buy,” and Tesla surged 3.5% to reach a two-month peak.
Amazon Inc’s shares surged 3.5%, propelling its market value over $2 trillion, marking it as the fifth U.S. firm to achieve this milestone.
“We’re probably going to see this choppiness continue until there is a catalyst,” said Annex Wealth Management’s chief economist, Brian Jacobsen.
FedEx surged 14%, projecting fiscal 2025 profits above expectations, lifting the Dow Jones Transport index to a month-long peak.
Whirlpool’s stock surged 14.1% following news from Reuters that Robert Bosch may bid for the American appliance maker.
This week features various economic data releases, culminating in Friday’s release of the pivotal personal consumption expenditures price index, crucial for Federal Reserve inflation assessment.
With the Fed forecasting just one December rate cut, focus shifts to data indicating anticipated price pressure moderation.
According to LSEG’s interest rate probabilities app, there is a 62% likelihood of a September rate cut, with two expected by year-end.
At 12:32 p.m. ET, the Dow Jones Industrial Average was up 22.65 points, or 0.06%, at 39,134.81; the S&P 500 was up 2.87 points, or 0.05%, at 5,472.17; and the Nasdaq Composite was up 65.81 points, or 0.37%, at 17,783.47.
Major US banks like JPMorgan Chase, Citigroup, and Bank of America saw slight declines of 0.2% to 0.7% before the Fed released its annual stress test results.
The S&P 500 financial index declined by 0.6%, reflecting broader market weakness in the sector.
Rivian’s stock surged by 22.5% following Volkswagen’s announcement of a $5 billion investment in the American EV company.
General Mills dropped 4.7% due to expected lower earnings and a larger-than-anticipated decline in quarterly sales.
Declining issues surpassed advancers with a ratio of 1.85-to-1 on the NYSE, while on the Nasdaq, it was 1.22-to-1.
The S&P index saw nine new highs and four new lows, whereas the Nasdaq had 28 highs and 142 lows.
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