Highlights
Equities were mixed Wednesday in another day of muted trading. A selloff in megacaps and technology weighed on the Nasdaq while cyclicals outperformed, especially energy and financials. The S&P 500's retreat from resistance at 4,300 early Wednesday was a negative.
The Dow industrials rose 0.3 percent, the S&P 500 slipped 0.4 percent, and the Nasdaq dropped 1.3 percent. US Treasury yields and oil prices rose while the dollar declined.
Activity remained restrained as the market awaits US inflation news and the Federal Reserve's policy decision next week. Rising short-end Treasury yields were in focus on a flood of Treasury issuance after the debt ceiling accord. Hopes for a soft landing were apparent in the relative strength of small caps this week.
A selloff in Amazon, Microsoft, and Google depressed the Nasdaq, along with weakness in software generally. Health care, travel and leisure, discount retailers, precious metals, and aerospace & defense stocks lagged too.
On the positive side, energy stocks outperformed with rising oil prices. Other winners included regional banks, homebuilders, materials, autos, utilities, media, machinery, and trucking.
The Dow industrials rose 0.3 percent, the S&P 500 slipped 0.4 percent, and the Nasdaq dropped 1.3 percent. US Treasury yields and oil prices rose while the dollar declined.
Activity remained restrained as the market awaits US inflation news and the Federal Reserve's policy decision next week. Rising short-end Treasury yields were in focus on a flood of Treasury issuance after the debt ceiling accord. Hopes for a soft landing were apparent in the relative strength of small caps this week.
A selloff in Amazon, Microsoft, and Google depressed the Nasdaq, along with weakness in software generally. Health care, travel and leisure, discount retailers, precious metals, and aerospace & defense stocks lagged too.
On the positive side, energy stocks outperformed with rising oil prices. Other winners included regional banks, homebuilders, materials, autos, utilities, media, machinery, and trucking.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
