Wall Street Indexes Flat to Higher in Choppy Trading Amid Tech Stock Rebound and Inflation Report Awaited
Tech Stocks Seek Stability as Wall Street Waits for Inflation Report
In a day of choppy trading on Wall Street, the main indexes remained mostly flat to higher as technology stocks tried to recover from a recent selloff. Investors were eagerly awaiting a key inflation report later in the week to get a better sense of the direction of monetary policy.
Chip leader Nvidia saw its shares drop 1.1%, dragging down the broader Philadelphia SE Semiconductor index by 0.5%. The S&P 500 information technology index managed to edge 0.3% higher in a volatile session, with investors questioning whether other sectors might offer better opportunities.
“It’s been four days of back and forth movements between the Dow and Nasdaq, highlighting the indecision in the market,” said Ryan Detrick, chief market strategist at the Carson Group.
Positive earnings and improved inflation data could potentially trigger a shift from tech stocks to sectors that have lagged behind this year. Apple saw a 2.4% increase after an upgrade from Rosenblatt, while Tesla surged 3.5% to a nearly two-month high. Amazon also joined the rally, jumping 3.5% and crossing the $2 trillion market value mark.
“We’re likely to see this volatility continue until there is a significant catalyst,” said Brian Jacobsen, chief economist at Annex Wealth Management.
FedEx provided some positive news, forecasting profits for fiscal 2025 above estimates, which caused its shares to soar 14%. This boosted the Dow Jones Transport index to its highest level in over a month. Likewise, Whirlpool surged 14.1% following reports that German engineering group Robert Bosch is considering a bid for the U.S. appliances maker.
With several economic data releases scheduled for the week, all eyes are on Friday’s release of the personal consumption expenditures price index, the Fed’s preferred inflation gauge. The market is closely watching for any signs of a slowdown in price pressures, especially with the Fed forecasting only one interest rate cut in December.
At midday, the Dow Jones Industrial Average was up 0.06% at 39,134.81, the S&P 500 rose 0.05% to 5,472.17, and the Nasdaq Composite gained 0.37% to 17,783.47. U.S. banks like JPMorgan Chase and Bank of America saw slight declines ahead of the Fed’s banking sector stress test results, causing the broader S&P 500 financial index to fall 0.6%.
Rivian, an electric vehicle maker, experienced a significant surge of 22.5% after German automaker Volkswagen announced a multi-billion-dollar investment in the company. However, General Mills faced a 4.7% dip after forecasting lower-than-expected annual profit and reporting a larger-than-anticipated drop in quarterly sales.
Overall, decliners outnumbered advancers on both the NYSE and Nasdaq, with the S&P index hitting new highs and lows, while the Nasdaq recorded numerous new highs and lows. The market remains on edge as it awaits further developments in the coming days.
