Technology stocks have reclaimed their leading position. The Nasdaq Composite experienced significant gains during Wednesday's trading session, driven by rising shares of Alphabet and Apple.
Alphabet's stock surged by 9.1% after Google successfully evaded severe antitrust penalties. A U.S. judge permitted the company to retain both its Chrome browser and its collaboration with Apple. Meanwhile, Bitcoin and gold also saw increases.
Even with the gains on Wednesday, investors are preparing for potential volatility in September, a month that has historically been unfavorable for stock market performance. Both stocks and bonds faced declines on Tuesday as investors expressed concerns over inflation and the independence of the Federal Reserve.
"Given September's poor historical performance, the defensive sectors have proven to be the most resilient," remarked Sam Stovall, chief investment strategist at CFRA Research.
Commenting on the market fluctuations this week, he noted, "We’ve observed at least one instance of a one-day turnaround in that rotation."
Shares of U.S. oil producers negatively impacted the S&P 500, plummeting sharply on Wednesday amid speculation that the Organization of the Petroleum Exporting Countries and its allies might opt to increase output, potentially worsening a global fuel surplus when the cartel convenes this weekend.
The 30-year Treasury yield retreated after briefly exceeding 5% early Wednesday, while the 10-year Treasury also saw a rally. These changes followed a government report indicating an increase in private layoffs compared to the previous year, along with a speech from a Federal Reserve official that highlighted "downside risks to the labor market."
In Europe, yields on longer-term debt stabilized after reaching their highest levels in over a decade on Tuesday. Japan, however, lagged behind, with bond prices remaining under pressure, resulting in higher yields.
Treasury Secretary Scott Bessent is set to begin interviewing candidates for the next chair of the Federal Reserve starting this Friday, as reported by sources familiar with the situation.
Macy's stock experienced a significant increase of 21% following the department store's upward revision of its annual forecast. Nevertheless, the company anticipates that consumers will be more selective due to tariffs and various economic challenges in the latter half of the year.
In the previous quarter, earnings per share for S&P 500 companies increased by approximately 13% compared to the same period last year, based on LSEG data that includes projections for companies that have yet to report.
During trading on Wednesday:
The stock market showed mixed results. The Dow industrials remained relatively stable, while the S&P 500 gained 0.5%. The Nasdaq Composite outperformed, climbing by 1%.
The yield on the 10-year Treasury note decreased to 4.211%, and the 30-year bond yield stood at 4.892%.
The WSJ Dollar Index experienced a slight decline.
Gold prices continued to rise. Gold futures for September delivery increased by 1.2%, closing at a record high of $3,593.20 per troy ounce.
Japanese and most Asian stock markets saw declines, whereas European markets experienced gains.
Oil prices fell following a media report indicating that OPEC+ might consider increasing output again after their meeting on Sunday.
