- US stocks mixes at midday
- FedEx, Rivian rally
- Amazon hits $2T valuation
4.10pm: Amazon crosses $2T market cap
The Nasdaq led the way at the close on Wednesday with a gain of approximately 0.5%, boosted by a strong performance from Amazon that pushed its market cap above $2 trillion for the first time.
Just after 4pm, the S&P 500 had risen 0.2% at 5,478 and the Dow Jones was up 0.04% to finish at 39,128. The Nasdaq ended the day at 17,805.
Amazon’s banner day meant that the tech giant became the fifth US company ever to boast a $2 trillion valuation. The stock gained 3.9% to finish at $193.61.
Elsewhere, treasury yields rebounded slightly from recent lows, with the 10-year yield increasing by 8 basis points to 4.31%.
Investors are closely watching economic data ahead of Friday's PCE inflation release, and Federal Reserve officials remain cautious about potential interest rate adjustments based on upcoming data.
12.10pm: Fed watch continues
At midday Wednesday, markets showed a mixed performance as investors monitored developments in the tech sector and assessed the likelihood of future interest rate cuts.
The S&P 500 and Nasdaq recovered slightly from recent losses, while the Dow Jones inched above the opening mark.
Treasury yields ticked higher from recent lows, with the 10-year yield climbing 6 basis points to 4.3%, contributing to the cautious sentiment in equities.
The market's recent volatility has raised questions about whether the downturn is temporary or indicative of a broader retreat, exacerbated by significant movements in Nvidia's stock. Economic data, particularly the upcoming PCE inflation release, and comments from Federal Reserve officials continued to influence market sentiment regarding potential rate cuts.
Meanwhile, Rivian shares were up nearly 25% on news of an alliance with Volkswagen, boosting investor optimism, while FedEx stock jumped nearly 15% following an upbeat profit forecast.
Consumer Discretionary stocks led gains, supported by strong earnings, contrasting with Energy stocks which faced losses amid concerns over high mortgage rates impacting new home sales, which hit a six-month low in May.
9.41am: Wall Street shifts lower
US stocks opened lower today as investors begin to analyse whether the AI-led bull run has run its course.
The Dow Jones and S&P 500 dropped 0.3% to 39,003 and 5,454, respectively, while the Nasdaq held flat at 17,710.
Nvidia, the bellwether for AI stocks, kept flat at the open, having experienced volatility in premarket trading.
FedEx shares increased by 12.5% as the parcel delivery firm’s fiscal fourth quarter and full-year earnings impressed, showing that its DRIVE cost savings plan is improving profitability.
For fiscal 2024, adjusted earnings per share (EPS) of $17.80 topped estimates of $17.76 while revenue of $87.7 million matched expectations.
Other movers included Rivian, up 26% after it secured a US$5 billion investment from Volkswagen, while white-goods manufacturer Whirlpool opened 15% higher after it was revealed Bosch was considering a takeover offer.
8.36am: Wall Street set for another mixed session
Wall Street stocks are set for a mixed opening, with the S&P 500 and Dow Jones expected to tick lower, while the Nasdaq is predicted to continue on from yesterday's gains.
Yesterday saw US investor fears reduced after Nvidia, which had suffered three consecutive days of falls, lifted more than 6.5%.
The AI chipmaker is expected to open 2% higher today, a strong sign for the rest of the market.
David Morrison at Trade Nation said: "Let’s see if investors remain so convinced of the chip designer’s future that they drive it up to new highs. If so, then it will restore the company’s status as the stock market’s bullish bellwether.
"If not, then further weakness could easily sour sentiment in general, even if there is perceived value outside the tech leaders."