Highlights
Stocks rebounded Wednesday with a lift from bargain hunting in megacaps amid news that US import tariffs on Canadian autos would be delayed a month even though other tariffs continued. The Dow Jones industrial average and the S&P 500 both rose 1.1 percent, and the Nasdaq gained 1.4 percent. US bond yields rose while oil prices and the dollar fell.
Wednesday's rebound occurred after a series of significant declines saw the S&P 500 give back all the rest of its gains since the election on hopes for a more business-friendly administration. The tariff move on Canadian autos was seen as evidence Trump is likely to ease other tariffs that took effect Tuesday, and would make deals on other tariffs that have already taken effect or are pending. Comments from Commerce Secretary Howard Lutnick also suggested Trump would ease his position on trade.
Meanwhile, economic indicators came in mixed with softer than expected ADP employment figures surprising to the downside, which boosted bond prices and push yields lower, which was initially supportive for stocks. At midmorning, however, a better than expected ISM services report pushed yields back up and limited the stock market's gains.
Among sectors, big technology led the winners along with materials, airlines, autos, pharma, transports, and pharma. Lagging were payments, regional banks, networking, energy, and apparel retail.
Wednesday's rebound occurred after a series of significant declines saw the S&P 500 give back all the rest of its gains since the election on hopes for a more business-friendly administration. The tariff move on Canadian autos was seen as evidence Trump is likely to ease other tariffs that took effect Tuesday, and would make deals on other tariffs that have already taken effect or are pending. Comments from Commerce Secretary Howard Lutnick also suggested Trump would ease his position on trade.
Meanwhile, economic indicators came in mixed with softer than expected ADP employment figures surprising to the downside, which boosted bond prices and push yields lower, which was initially supportive for stocks. At midmorning, however, a better than expected ISM services report pushed yields back up and limited the stock market's gains.
Among sectors, big technology led the winners along with materials, airlines, autos, pharma, transports, and pharma. Lagging were payments, regional banks, networking, energy, and apparel retail.
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.
