U.S. Stocks Mixed After Record-Breaking Session
On Wednesday, U.S. stocks were mixed following another record-breaking session on Wall Street. Chip names, which have been a key driver of the current bull run, declined while Treasury yields slightly ate into their advance after a strong 30-year bond auction.
The tech-heavy Nasdaq Composite slipped 0.31% to 16,214.68 points, while the S&P 500 was up marginally by 0.01% to 5,176.00 points. The Dow added 0.45% to 39,182.01 points, buoyed by gains in industrial conglomerate 3M.
Of the 11 S&P sectors, nine were in the green, with Energy leading the way. Technology and Real Estate were the two sectors in the red.
Market participants took a breather on Wednesday, digesting a Wall Street rally that seems to be ignoring negative signals and pushing to new highs almost daily. Despite a slightly hotter-than-expected consumer price index (CPI) report on Tuesday, equities surged as the data did little to dent expectations of interest rate cuts.
According to Deutsche Bank’s Jim Reid, investors remain unfazed by inflation concerns and continue to see a June rate cut as the most likely outcome. The odds of a 25 basis point rate cut by the Fed in June are now at about 58%.
Treasury yields saw gains, especially in longer-term maturities, after a strong 30-year bond auction. Dollar Tree was a significant drag on the S&P 500, dropping more than 14% after disappointing quarterly results and guidance.
Overall, the market continues to show resilience and optimism, with investors eagerly awaiting the Fed’s updated economic projections next week. Stay tuned for more updates on the evolving market trends.
