Highlights
Stocks rose Wednesday, with technology megacaps leading, to extend a run of gains. The Dow Jones industrial average gained 1.1 percent, the S&P 500 rose 1.0 percent, and the Nasdaq was up 1.2 percent. The S&P and Nasdaq set record closing highs for a third straight day and both rose for a seventh consecutive session. Bond yields declined while the dollar was mixed and oil prices rose.
On a relatively quiet day, the path of least resistance continues to be higher. Bullish drivers include enthusiasm over artificial intelligence, hopes for a soft landing with lower interest rates in the fall, and ongoing flows into stocks. Interest rates edged down after another strong U.S. Treasury auction; the 10-year note yield priced below where it traded at auction time amid strong demand from investors.
The second round of semiannual testimony from Federal Reserve Chair Jerome Powell didn't break new ground. Some investors appeared disappointed, however, at the absence of more dovish comments from the Fed chair, who appeared to be making an effort to avoid making news. Many analysts detected a shift in Powell's comments Tuesday suggesting more concern about a slowing economy.
Investors remain keen to see consumer price and producer price reports due on Thursday and Friday and the start of earnings season, with big banks including JP Morgan and Citigroup reporting early Friday.
Among sectors Wednesday, best performers included regional banks, hotels, big tech, chipmakers, autos, homebuilders paper & packaging, precious metals, biotech and big pharma.
Lagging were restaurants, discount retail, apparel, hospitals, payments, software and credit cards.
On a relatively quiet day, the path of least resistance continues to be higher. Bullish drivers include enthusiasm over artificial intelligence, hopes for a soft landing with lower interest rates in the fall, and ongoing flows into stocks. Interest rates edged down after another strong U.S. Treasury auction; the 10-year note yield priced below where it traded at auction time amid strong demand from investors.
The second round of semiannual testimony from Federal Reserve Chair Jerome Powell didn't break new ground. Some investors appeared disappointed, however, at the absence of more dovish comments from the Fed chair, who appeared to be making an effort to avoid making news. Many analysts detected a shift in Powell's comments Tuesday suggesting more concern about a slowing economy.
Investors remain keen to see consumer price and producer price reports due on Thursday and Friday and the start of earnings season, with big banks including JP Morgan and Citigroup reporting early Friday.
Among sectors Wednesday, best performers included regional banks, hotels, big tech, chipmakers, autos, homebuilders paper & packaging, precious metals, biotech and big pharma.
Lagging were restaurants, discount retail, apparel, hospitals, payments, software and credit cards.
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.
