Wall Street Ends Mixed as Dow Jones Slides Again
While Wednesday saw little in terms of fresh economic data, several Federal Reserve officials made public remarks, warning of headwinds.
Quick overview
- U.S. stock indexes closed mixed as investors focused on trade developments and awaited stronger market catalysts.
- The Dow Jones fell 0.21%, while the S&P 500 edged up 0.10% and the Nasdaq gained 0.72%, driven by strength in communication services and technology sectors.
- Risk appetite returned following a report showing U.S. inflation cooled to 2.3% year-over-year, easing concerns about potential rate hikes.
- Federal Reserve officials warned that new import tariffs could undermine hopes for inflation to slow, impacting future rate cut expectations.
U.S. stock indexes closed mixed on Wednesday, with no clear direction as investors remained focused on trade developments and awaited stronger market catalysts.
Sectors showed varied performances, with notable strength in communication services and technology, led by artificial intelligence giant Nvidia.
The Dow Jones Industrial Average, which tracks 30 major U.S. companies, fell 0.21% to 42,051.06 points. The S&P 500, representing the most valuable companies, edged up 0.10% to 5,892.58. Meanwhile, the tech-heavy Nasdaq Composite gained 0.72%, closing at 19,146.81.
Risk appetite returned following Tuesday’s report showing U.S. inflation cooled to 2.3% year-over-year in April. This moderation eased concerns about potential rate hikes and reinforced expectations that the Federal Reserve may keep interest rates steady, with cuts likely later this year.
With no major economic indicators released Wednesday, market attention remained on trade relations. Investors are monitoring the 90-day pause and reduction in tariffs between the U.S. and China, hoping it paves the way for a broader, more impactful agreement.
Sector Highlights and Market Movers
Sectors posted mixed results. Communication services led with a 1.58% gain, followed by technology (+0.96%) and consumer discretionary (+0.38%). The steepest decline came from the energy sector, which dropped 2.31%.
Among standout stocks, Nvidia rose 4.17%, continuing to lead gains in both the tech space and within the Dow Jones. Walt Disney (+1.40%) and Goldman Sachs (+1.32%) also posted strong performances.
Fed Commentary Continues
While Wednesday saw little in terms of fresh economic data, several Federal Reserve officials made public remarks, warning of potential economic headwinds from tariffs.
Fed Vice Chair Philip Jefferson noted that hopes for inflation to slow toward the 2% target could be undermined by new import tariffs, which risk reigniting price pressures. These comments come as markets continue to price in three to four rate cuts from the Fed later this year.
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