S&P 500 Flat, Nasdaq Up, Dow Slips Amid Fed Testimony and Geopolitical Calm
U.S. stocks ended mixed on Wednesday, taking a breather from a two-day rally as investors digested Federal Reserve Chair Jerome Powell’s second round of congressional testimony and monitored the fragile ceasefire between Israel and Iran.
The S&P 500 finished virtually unchanged at 6,092.16, just below its all-time high from February. The Nasdaq Composite rose 0.31% to close at 19,973.55, driven by tech gains, while the Dow Jones Industrial Average fell 106.59 points, or 0.25%, to 42,982.43.
Investors Wait for S&P Breakout
“It almost feels like back to your regularly scheduled bull market,” said Ryan Detrick, chief market strategist at Carson Group. “We’ve dealt with tariffs, Middle East tensions, yet markets remain resilient.”
Detrick emphasized that rotation into growth sectors like technology and communication services is fueling optimism for a continued summer rally. Those two sectors, along with healthcare, outperformed on the day, while real estate, consumer staples, and utilities lagged.
Nvidia Boosts Nasdaq With Record Close
Nvidia (NVDA) shares jumped to a new all-time high, lifting its valuation to $3.75 trillion and maintaining its position as the world’s most valuable company. The move helped propel the Nasdaq to near-record territory, offsetting broader market hesitation.
Fed Watch: Powell Stays the Course
Chair Powell told the Senate Banking Committee the central bank would wait to see the full impact of the Trump administration’s tariffs before cutting rates. Markets are pricing in a 25% chance of a rate cut in July and a 67% chance by September, according to CME’s FedWatch tool.
Investors are now looking to Thursday’s final first-quarter GDP reading and Friday’s PCE inflation report for clues about the Fed’s next move.
Economic Data and Corporate Moves
Housing weighed on sentiment after new home sales fell 13.7% and mortgage applications slipped due to rising rates.
On the corporate front:
- FedEx (FDX) dropped 3.3% after issuing a profit warning tied to weakened global trade.
- UPS (UPS) followed suit, sliding 1.2%.
- General Mills (GIS) lost 5.1% on disappointing guidance.
- BlackBerry (BB) jumped 12.5% after raising its revenue forecast.
- Micron Technology (MU) gained over 5% in after-hours trading on strong fourth-quarter guidance.
- Tesla (TSLA) fell 3.8% as European sales declined for a fifth straight month.
Market Breadth and Volume
Decliners outpaced advancers on both the NYSE and Nasdaq. On the NYSE, the ratio was nearly 2-to-1; on the Nasdaq, it was 1.83-to-1. The session saw 16.02 billion shares traded, below the 20-day average of 18.08 billion.
