U.S. Stocks Drift to Mixed Finish as Markets Worldwide Experience Lull
In a day marked by relative quiet in financial markets worldwide, U.S. stocks ended with a mixed finish on Wednesday. The S&P 500 slipped slightly from its all-time high, the Dow Jones Industrial Average rose, and the Nasdaq composite dipped.
The bond market also saw little activity, with Treasury yields ticking higher. Stock markets abroad were similarly mixed, with mostly modest moves.
One area of notable action was in the oil market, where prices climbed significantly. A barrel of benchmark U.S. crude settled at $79.72, while Brent crude rose to $84.03 per barrel.
The rise in oil prices has contributed to higher inflation than expected, which has dampened hopes for a potential interest rate cut by the Federal Reserve at its upcoming meeting. However, expectations remain for rate cuts to begin in June to alleviate pressure on the economy and financial system.
Despite the recent rally in stocks, concerns have been raised about the market being overvalued. Renowned investor Jeremy Grantham warned that the long-term prospects for the U.S. market appear bleak, citing high valuations and reduced future returns.
On Wall Street, Dollar Tree saw a significant drop in its stock price after reporting weaker-than-expected results for the latest quarter. In contrast, Williams-Sonoma experienced a substantial jump in its stock price after announcing a dividend increase and stock buyback program.
Energy producers also saw gains, buoyed by the rise in oil prices. Stocks in the S&P 500 rose, with Valero Energy, Marathon Petroleum, and Exxon Mobil among the top performers.
While a majority of stocks in the S&P 500 ended the day in positive territory, losses from some Big Tech companies weighed on the index. In the bond market, Treasury yields rose slightly, reflecting expectations for future Fed actions.
Overall, stock markets abroad saw modest movements, with indexes in Europe and Asia posting mixed results. The day’s trading activity highlighted the ongoing uncertainty and volatility in global financial markets.
(AP Business Writer Yuri Kageyama contributed to this report. Copyright 2024 The Associated Press. All rights reserved.)
