U.S. stocks concluded Wednesday’s trading session with a mixed performance. The S&P 500, a broad measure of the U.S. stock market, inched up slightly by 0.08%, settling at 5,071.63. This modest gain follows a strong start to the week, where the index recovered nearly two-thirds of the previous week’s losses.
In contrast, the Dow Jones Industrial Average, an index of 30 large U.S. companies, dipped by 0.1% or 42.77 points, closing at 38,460.92. The Nasdaq Composite, an index of technology stocks, edged up by 0.1% or 16.11 points, finishing the day at 15,712.75.
Tesla, the electric vehicle and clean energy company, stole the spotlight with a 12.1% surge. This jump came after Tesla announced plans to accelerate the production of more affordable vehicles, a move that investors hope will reignite growth for the company. The announcement helped offset Tesla’s reported 55% decline in profit for the recent quarter. Tesla is the first of the so-called “Magnificent Seven” group of stocks, which played a significant role in last year’s stock market gains, to report its earnings for the start of 2024.
Meta Platforms, the parent company of Facebook and Instagram, also released its quarterly results after the market closed on Wednesday. Investors will be closely watching the earnings reports of other “Magnificent Seven” companies, including Alphabet and Microsoft, in the coming days. The hope is that profit growth will extend beyond these large companies to a broader range of industries, supported by the ongoing strength of the U.S. economy.
However, rising Treasury yields in the bond market dampened the bullish sentiment in the stock market. The yield on the 10-year Treasury note increased to 4.64% from 4.60% late Tuesday. Higher yields make it more expensive for companies to borrow money, which can impact their earnings and stock prices.
Among individual stock movements, Norfolk Southern, a railroad operator, fell 3.6% after reporting weaker-than-expected quarterly results. Boeing, an aerospace giant, lost 2.9% despite reporting results that were not as disappointing as analysts had feared. Teledyne Technologies, a provider of digital imaging sensors and other equipment, tumbled 10.9% after missing forecasts for profit and revenue.
On the positive side, Hasbro, a toy and game company, jumped 11.9% after surpassing analysts’ expectations for both profit and revenue in its latest quarter. Texas Instruments, a semiconductor company, climbed 5.6% after beating forecasts for profit and revenue. Boston Scientific, a medical device company, also contributed to the S&P 500’s gains, rising 5.7% after topping profit and revenue estimates.
In international markets, Japan’s Nikkei 225 index surged 2.4% as the value of the Japanese yen continued to decline against the U.S. dollar. The yen has been trading at its lowest level in 34 years, benefiting Japanese exporters but raising speculation about potential government intervention to strengthen the currency. Stock indexes in other parts of Asia also mostly rose, while European markets experienced modest declines.
