The S&P 500 ticked higher in Wednesday’s shortened trading session as investors appeared to look past sluggish economic data.
The broad index added 0.4%. The Nasdaq Composite rose 0.8% as mega-cap technology names like Tesla and Nvidiarallied. Both indexes touched fresh all-time highs in the session and are on pace for record closes.
The Dow Jones Industrial Average lost 60 points, or 0.2%, dragged down by a drop of more than 1.5% in UnitedHealth.
Trading volume was muted Wednesday with the New York Stock Exchange closing early at 1 p.m. ET. The exchange will be shut on Thursday for Independence Day.
Investors parsed stats released Wednesday morning showing softening in the economy ahead of Friday’s all-important June jobs report. ADP data showed less private payroll growth than expected in June, while weekly jobless claims numbers came in higher than economists forecast.
A reading of service sector activity released later in the morning was considerably weaker than expected and indicated a contraction, according to the Institute for Supply Management.
While these economic reports could concern investors about the state of the economy, stocks felt support from a decline in bond yields. Notably, the rate on the 10-year U.S. Treasury fell for a second day in a row on Wednesday.
Tesla’s ongoing ascent after a better-than-expected deliveries report also boosted the broader market. The electric vehicle maker’s stock is up around 5% on Wednesday, placing it track for a seventh straight positive session. That would mark its first winning streak of that length in 2024.
“Everybody hated Tesla three months ago. But now, they’re having their day in the sun,” said Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report. Tesla’s rally sets “a bullish tone for the market overall.”
Artificial intelligence darling Nvidia jumped around 3.5%, also helping the tech-heavy Nasdaq outperform.
After Wednesday’s early closing bell, traders will watch for minutes from the June Federal Open Market Committee meeting expected at 2 p.m. ET.
The broad index added 0.4%. The Nasdaq Composite rose 0.8% as mega-cap technology names like Tesla and Nvidiarallied. Both indexes touched fresh all-time highs in the session and are on pace for record closes.
The Dow Jones Industrial Average lost 60 points, or 0.2%, dragged down by a drop of more than 1.5% in UnitedHealth.
Trading volume was muted Wednesday with the New York Stock Exchange closing early at 1 p.m. ET. The exchange will be shut on Thursday for Independence Day.
Investors parsed stats released Wednesday morning showing softening in the economy ahead of Friday’s all-important June jobs report. ADP data showed less private payroll growth than expected in June, while weekly jobless claims numbers came in higher than economists forecast.
A reading of service sector activity released later in the morning was considerably weaker than expected and indicated a contraction, according to the Institute for Supply Management.
While these economic reports could concern investors about the state of the economy, stocks felt support from a decline in bond yields. Notably, the rate on the 10-year U.S. Treasury fell for a second day in a row on Wednesday.
Tesla’s ongoing ascent after a better-than-expected deliveries report also boosted the broader market. The electric vehicle maker’s stock is up around 5% on Wednesday, placing it track for a seventh straight positive session. That would mark its first winning streak of that length in 2024.
“Everybody hated Tesla three months ago. But now, they’re having their day in the sun,” said Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report. Tesla’s rally sets “a bullish tone for the market overall.”
Artificial intelligence darling Nvidia jumped around 3.5%, also helping the tech-heavy Nasdaq outperform.
After Wednesday’s early closing bell, traders will watch for minutes from the June Federal Open Market Committee meeting expected at 2 p.m. ET.
