U.S. stocks ended mixed on Wednesday as the delicate ceasefire between Israel and Iran remained in place, while investors closely watched the second day of congressional testimony of Federal Reserve Chairman Jerome Powell. The S&P ended little changed, while the Dow closed in the red. However, the Nasdaq ended in positive territory.
The Dow Jones Industrial Average (DJI) slid 0.3% or 106.59 points, to close at 42,982.43 points.
The S&P 500 closed little changed, declining 0.02 points to finish at 6,092.16 points. Consumer staples and real estate stocks were the biggest losers.
The Consumer Staples Select Sector SPDR (XLP) lost 1.3%, while the Real Estate Select Sector SPDR (XLRE) fell 2.7%. However, the Technology Select Sector SPDR (XLK) added 0.9%. Nine of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq rose 0.3%, or 61.02 points, to end at 19,973.55 points.
The fear-gauge CBOE Volatility Index (VIX) was down 4.12% to 16.76. Decliners outnumbered advancers on the NYSE by a 1.94-to-1 ratio. On Nasdaq, a 1.83-to-1 ratio favored declining issues. A total of 16.02 billion shares were traded on Wednesday, lower than the last 20-session average of 18.08 billion.
Stocks ended mixed on Wednesday, although the geopolitical tensions in the Middle East eased. The delicate ceasefire announced by President Donald Trump on Tuesday continued to hold. On Wednesday, Trump announced victory but it remained unclear how much damage Iran’s uranium enrichment sites suffered after the U.S. airstrikes.
Tech stocks rallied on Wednesday, lifting the Nasdaq. Shares of NVIDIA Corporation (NVDA) jumped 4.3% after hitting an all-time high and lifting the company’s market cap to $3.75 trillion.
The artificial intelligence darling regained its position as the world’s most valuable company. NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 was little changed on Wednesday and was less than 1% lower than 6,147.43, its intraday record set on Feb. 19. The index is now on track to hit its all-time closing high of 6,144.15.
The S&P 500 is now over 2% higher week to date as the Middle East tensions appeared to de-escalate. The index, in April, was more than 20% below its all-time closing high following Trump’s announcement of tariffs. However, it has since made a solid rebound.
Investors also closely watched Fed Chair Jerome Powell’s congressional testimony for the second straight row. He maintained his hawkish stance, saying that the Federal Reserve is ready to wait and watch the inflationary effects of Trump’s tariffs on the economy.
