Wall Street delivered a divided performance on Wednesday, with the S&P 500 Index ($SPX) (SPY) falling -0.15% while the Dow Jones Industrial Average ($DOWI) (DIA) climbed +0.23% to a new all-time high.
The Nasdaq 100 Index ($IUXX) (QQQ) edged up +0.30%, supported by a rebound in chipmaker stocks that had suffered sharp losses in the prior session.
Markets are keenly focused on the conclusion of today’s two-day Federal Open Market Committee meeting, the first chaired by new Fed Chair Kevin Warsh.
While interest rates are broadly expected to remain unchanged, investors are closely watching how Warsh handles the post-meeting press conference and his signals on the inflation outlook.
Stocks received carryover support after the United States and Iran agreed to end their conflict and reopen the Strait of Hormuz, sending crude oil prices to a 3.5-month low and fueling risk-on sentiment across asset markets.
Better-than-expected US economic data also supported equities, with May retail sales rising +0.9% month-on-month, ahead of the +0.6% consensus estimate.
May retail sales excluding autos also beat forecasts, rising +0.8% month-on-month against expectations of +0.6%, reinforcing the picture of resilient American consumer demand.
May pending home sales surged +3.8% month-on-month, crushing expectations of +0.9% and marking the biggest monthly increase in 20 months.
Goldman Sachs cut its Brent crude price forecast to $80 a barrel in the fourth quarter, down from $90, and projected Persian Gulf crude exports would return to pre-war levels by the end of July, one month earlier than previously expected.
Applied Materials (NASDAQ: AMAT) led gainers in both the S&P 500 and Nasdaq 100, surging more than +8%, while ASML Holding (ASML), ARM Holdings (ARM), and Lam Research (LRCX) each climbed more than +5%.
Broadcom (AVGO) and Marvell Technology (MRVL) rose more than +4%, and Advanced Micro Devices (AMD) added more than +2% as the semiconductor sector broadly recovered.
The Magnificent Seven technology stocks moved in the opposite direction, with Meta Platforms (META) falling more than -3% to lead Nasdaq 100 decliners on the day.
Alphabet (GOOGL) and Amazon.com (AMZN) each dropped more than -2%, while Microsoft (MSFT) and Tesla (TSLA) shed more than -1% apiece.
UniQure NV (QURE) was a standout performer, rocketing more than +77% after the FDA allowed three-year data from its Phase I/II study of AMT-130 for Huntington’s disease as the primary basis for an accelerated approval application.
La-Z-Boy (LZB) jumped more than +15% after reporting Q4 adjusted EPS of $1.26, well above the analyst consensus of 83 cents.
Jabil (JBL) rose more than +4% after posting Q3 net revenue of $8.80 billion, beating the consensus of $8.54 billion, and raised its full-year net revenue outlook to $35 billion from $34 billion.
CME Group (CME) declined more than -3% after announcing that CEO Terry Duffy is stepping down, with CFO Lynne Fitzpatrick set to replace him on March 1, 2027.
Trucking stocks extended their losses for a third consecutive session following Citigroup’s Monday warning that the recent rally in trucking and logistics stocks had been overdone, with RXO Inc (RXO) falling more than -4% and Old Dominion Freight Line (ODFL) dropping more than -3%.
The 10-year T-note yield ticked up +1.2 basis points to 4.434%, pressured by the stronger-than-expected retail sales and pending home sales data, which markets interpreted as a hawkish signal for Federal Reserve policy.
