Highlights
Chipmaker stocks consolidated lower Wednesday after two days of gains to weigh on the major stock averages while the broader market fared better. The Dow Jones industrial average eased 0.1 percent while the S&P 500 was down 0.2 percent and the Nasdaq down 0.7 percent. Bond yields were lower at the short end and higher at the long end while oil prices declined and the dollar rose.
Federal Reserve Chair Kevin Warsh's comment that inflation worries have diminished gave the short end of the bond market a lift and boosted equities. Markets are awaiting US employment figures due Thursday and generally look for a moderate 114,000 rise in nonfarm payrolls for June.
A rally in Meta led communications services higher, along with consumer discretionary and financials. Consumer staples, utilities, financials, and industrials lagged. Energy stock were hurt by declining oil prices as traders await news from US-Iran talks.
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.