- The Nasdaq Composite saw a 0.4% increase.
- Lennar and Intuitive Surgical, with increases of over 3% and more than 5%, respectively.
- The surge is explained by the 52-week highs reached by mega-caps Meta and Alphabet.
As investors awaited the release of new U.S. inflation data and earnings, stocks on Wednesday were flat. While the Dow Jones Industrial Average gained 73 points, the S&P 500 increased by 0.2%. The Nasdaq Composite saw a 0.4% increase.
The falling price of bitcoin caused cryptocurrency exchanges Coinbase and Marathon Digital to drop more than 1.5% each. Lennar and Intuitive Surgical, with increases of over 3% and more than 5%, respectively, drove the overall market higher. The most recent report on the consumer price index is scheduled for release on Thursday. According to a Dow Jones survey of economists, December will see a 3.2% increase from the previous year.
Wednesday stocks
Investors will scan the papers for any hints regarding the potential timing of rate cuts by the Federal Reserve. The major financial heavyweights, JPMorgan Chase, Bank of America, UnitedHealth Group, and Delta Air Lines, will release their earnings on Friday, heating the market.
After a mixed afternoon, the S&P 500 lost 0.15%, the Dow Jones Industrial Average dropped about 158 points, and the Nasdaq Composite barely gained 0.09%. Energy saw a 1.6% decline in the end, accounting for seven of the eleven major S&P sectors that ended with losses.
Wednesday marked the 52-week intraday high for the SPDR Communication Services Sector Fund (XLC), the highest level since February 2, 2022. The surge is explained by the 52-week highs reached by mega-caps Meta and Alphabet.
Nevertheless, the majority of XLC elements are unfavorable. In terms of the equities market, Barclays anticipates positive surprises and cyclicals in 2024, along with a higher but more conservative market.
Following the rapid rise, Barclays anticipates “healthy consolidation” for the stock market, with room for growth due to values and earnings. The trend is towards reduced rates, even if rate reductions priced in the US could appear overly drastic in the absence of a severe recession. While the Dow Jones Industrial Average gained 32 points, the S&P 500 added 0.1% at the opening.
