- US stocks closed higher on Wednesday.
- Mega-cap tech rose, though Nvidia wavered through the session.
- Meanwhile, traders are awaiting upcoming inflation data for further guidance on rate cuts.
US stocks were up Wednesday as traders took in another losing session for Nvidia.
Major indexes were flat or slightly lower, while Treasury yields jumped.
Nvidia shares wavered, selling off earlier in the day before edging slightly higher to close the session. The chipmaker shed more than $400 billion in value over a four-day stretch starting in the middle of last week, sowing doubt among investors about how far the artificial intelligence-fueled technology trade can go.
Tech stocks moved slightly higher broadly on Wednesday, with the Nasdaq Composite climbing throughout the day. Mega-cap names were up, with Amazon hitting a $2 trillion market cap for the first time ever. The tech giant closed at $193.61, up nearly 4% in the session. Tesla shares rose 5% and Apple stock was up by about 2%.
The tech sector is on track to close out a strong first half, with the Nasdaq up 20% so far in 2024.
Meanwhile, traders are bracing for Personal Consumption Expenditures inflation, the Fed's preferred inflation measure, to roll out on Friday. According to economists polled by Dow Jones, prices are expected to have risen 2.6% year over year last month.
A hotter-than-expected inflation reading could give markets more reason to expect fewer or even zero rate cuts this year. Currently, investors see a 61% chance the Fed will cut rates at least twice in 2024, per the CME FedWatch tool.
Treasury yields jumped on Wednesday. The 10-year bond rose eight basis points to 4.318%. The two-year note was up five basis points. to 4.745%.
Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:
- S&P 500: 5,477.91, up 0.16%
- Dow Jones Industrial Average: 39,128.26, up 0.04% (+16.10 points)
- Nasdaq composite: 17,805.16, up 0.49%
Here's what else is going on today:
- Nvidia could hit a $6 trillion valuation by the end of the year as investors start to realize how cheap the stock actually is, one hedge fund manager says.
- Trump's pledge to deport the most US workers in history could trigger a recession and an inflation spike, economist Adam Posen warns.
- Russia's oil and gas business is primed for a 50% boom this month, Reuters estimated.
- Why the world is barreling towards a "food war," according to one commodity trader.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil fell 0.24% to $80.64 a barrel. Brent crude, the international benchmark, edged down to $84.95 a barrel.
- Gold slipped 0.9% to $2,309.70 per ounce.
- The 10-year Treasury yield rose eight basis points to 4.318%.
- Bitcoin slumped 1.75% to $61,048.74.