U.S. stocks concluded Wednesday's trading session with a mixed performance, following comments from Federal Reserve Chair Jerome Powell, who indicated that a rate cut in December is not guaranteed. The S&P 500 edged up by 0.2%, and the Nasdaq increased by 1%, with both indexes achieving new record highs. In contrast, the Dow Jones Industrial Average declined marginally by around 30 points from its peak.
Initially, markets surged in response to the Federal Reserve's 25 basis point interest rate cut and the announcement to terminate the balance sheet runoff in December. However, Powell's remarks introduced uncertainty, resulting in higher yields and a paring back of market gains. Leading the market rally were mega-cap technology stocks. Nvidia shares rose by 3.6% and briefly exceeded a $5 trillion market capitalization, fueled by reports that President Trump might authorize Blackwell chip exports to China. Additionally, Broadcom, AMD, and Micron each posted gains exceeding 2%.
Conversely, cyclical and defensive sectors underperformed, with stocks in the consumer defensive and healthcare industries facing downward pressure. Notably, positive corporate earnings provided some support; Caterpillar, Verizon, CVS Health, and Fiserv recorded gains due to robust financial results. Meanwhile, anticipation built as Microsoft, Alphabet, and Meta were scheduled to release their earnings reports after the market close.
