Highlights
Stocks mostly held slim ranges in quiet trading Wednesday until a late rally in Nvidia lifted the market to its best levels late in the day. The Dow Jones industrial average was flat, the S&P 500 firmed 0.2 percent, and the Nasdaq rose 0.5 percent. Bond yields and the dollar rose while oil prices slipped.
Select big technology shares remained in focus. Nvidia continued its recent volatility; a selloff in the morning gave way to aggressive dip-buying in the afternoon as many investors remain enamored of the artificial intelligence poster child. Amazon was a huge winner to cross the $2 trillion capitalization threshold after an analyst upgrade and positive news about its investment in Rivian, the EV maker. Apple advanced too, a big lift for the major averages.
Megacaps were restrained through much of the day as market interest rates tracked a selloff in global fixed income markets after higher than expected consumer price figures from Australia, which followed Canada's upside CPI surprise Tuesday. Decent results in the day's U.S. Treasury 5-year note auction only slightly limited the up-move in yields. Reaction was limited to U.S. new home sales that came in much weaker than expected in the latest month as prior months were revised much higher.
Company news saw FedEx breaking higher on an earnings beat and better guidance. Rivian advanced on news of an investment from Volkswagen. On the downside, Southwest Airlines slipped on weak guidance, and General Mills dropped after posting soft revenues and a tepid outlook.
Select big technology shares remained in focus. Nvidia continued its recent volatility; a selloff in the morning gave way to aggressive dip-buying in the afternoon as many investors remain enamored of the artificial intelligence poster child. Amazon was a huge winner to cross the $2 trillion capitalization threshold after an analyst upgrade and positive news about its investment in Rivian, the EV maker. Apple advanced too, a big lift for the major averages.
Megacaps were restrained through much of the day as market interest rates tracked a selloff in global fixed income markets after higher than expected consumer price figures from Australia, which followed Canada's upside CPI surprise Tuesday. Decent results in the day's U.S. Treasury 5-year note auction only slightly limited the up-move in yields. Reaction was limited to U.S. new home sales that came in much weaker than expected in the latest month as prior months were revised much higher.
Company news saw FedEx breaking higher on an earnings beat and better guidance. Rivian advanced on news of an investment from Volkswagen. On the downside, Southwest Airlines slipped on weak guidance, and General Mills dropped after posting soft revenues and a tepid outlook.
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.
