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Wall Street ascended on Wednesday, galvanized by a surge in technology stocks. The benchmark S&P 500 (SP500) ventured ever closer to the elusive 5,000-point milestone, aiming to etch its name in the annals of financial history.
Tech Stocks Fuel Surge
A majority of the “Magnificent 7” club experienced gains, bolstered further by a lift in cybersecurity stocks following Fortinet’s robust quarterly results and guidance.
The tech-heavy Nasdaq Composite (COMP.IND) soared by 0.90%, ascending to 15,750.10 points during midday trades; meanwhile, the Dow (DJI) registered a 0.45% uptick, settling at 38,694.77 points. However, the blue-chip index’s advance was tempered by a post-earnings downturn in pharmaceutical giant Amgen (AMGN).
Approaching 5,000 Mark
The S&P 500 (SP500) edged 0.82% higher, tantalizingly close to 4,995.02 points. It surged to a session high of 4,998.65 points; just a hair’s breadth away from the historic 5,000 mark.
Of the 11 S&P sectors, nine flourished in the vibrant market environment.
Resilient Technology Stocks
The ongoing surge in technology stocks this year has admirably neutralized concerns regarding lofty valuations and the Federal Reserve’s firm stance against aggressive interest rate cuts. Even the persistent downturn in New York Community Bank’s shares, reigniting worries about the stability of regional banks, failed to impede Wall Street’s relentless upward momentum.
Wednesday brought forth a deluge of earnings reports from several major corporations, unveiling captivating insights and driving market movements.
Enphase Energy (ENPH) and Emerson Electric (EMR) each surged over 10%, claiming the top two percentage gains on the S&P 500 (SP500). The solar equipment manufacturer expressed optimism about inventory levels normalizing and anticipates an uptick in demand by the subsequent quarter’s end. Meanwhile, the electrical equipment producer reported accelerated quarterly sales growth.
Chipotle Mexican Grill (CMG) also prominently ascended in S&P percentage gainers, propelled by the sustained consumer demand for its diverse array of culinary offerings.
Market Fluctuations
Conversely, Uber Technologies (UBER) experienced fluctuations, as investors dissected its surpassing performance in revenue and net income, largely attributed to a surge in gross bookings.
However, VF Corp (VFC) endured the highest percentage loss on the S&P 500 (SP500) after its latest quarterly results underscored the dire need for a comprehensive and potentially arduous strategic overhaul.
Gilead Sciences (GILD) also witnessed a substantial decline in S&P percentage due to its unimpressive annual sales guidance.
Upcoming Corporate Earnings
The attention then turned to imminent corporate earnings, with Walt Disney (DIS), the entertainment behemoth, set to divulge its financial performance after the market’s closing bell.
Treasury Yield Movement
Shifting focus to the fixed-income markets, Treasury yields exhibited a modest increase. A landmark $42 billion 10-year note auction transpired, marking the first such event in a year, underscoring robust demand for bonds.
The 30-year yield (US30Y) experienced a 2-basis point upswing to 4.32%, while the 10-year yield (US10Y) also escalated by 2 basis points to 4.11%. The more rate-sensitive 2-year yield (US2Y) witnessed a 1-basis point increase, settling at 4.42%.
Stay updated on live Treasury yield data across the curve at the Seeking Alpha bond page.
Stock Movement
Amid non-earnings-related fluctuations, Paramount Global (PARA) (PARAA) foundered, ranking among the top S&P 500 (SP500) percentage decliners. CNBC’s David Faber’s assertion that Warner Bros. Discovery (WBD) likely harbored no genuine interest in acquiring Paramount (PARA) (PARAA) catalyzed the downward spiral. Warner Bros. (WBD) also slumped in response to the revelation.
