Wall Street experienced a cooling-off period on Wednesday, with early session gains trimmed following the release of revised government data. The figures revealed a downward revision of 818,000 nonfarm payrolls from previous estimates between April 2023 and March 2024. This adjustment signaled that the labor market’s strength might not be as robust as investors had initially perceived.
By midday trading in New York, major US indices hovered slightly above the flatline. The S&P 500 and the Nasdaq 100, which snapped an eight-day winning streak on Tuesday, managed to inch up. Blue-chip stocks remained flat, while small-cap stocks demonstrated a stronger performance, gaining 0.6%.
Traders are now eagerly awaiting further insight into the Federal Reserve’s monetary policy plans. The minutes of the Federal Reserve Open Market Committee’s July meeting, scheduled for release at 2:00 p.m. ET, are expected to provide crucial information. Meanwhile, speculators have increased their expectations for a 50-basis-point rate cut in September, assigning a 32.5% probability to this scenario in response to the downward revisions of the annual nonfarm payrolls. The market is fully pricing in a total of 100 basis points, equivalent to a full percentage point, in rate cuts by the end of the year.
The U.S. dollar continues to weaken, experiencing its fourth consecutive session of losses. Treasury yields are also dipping on the shorter end of the curve, with the policy-sensitive 2-year note seeing yields fall by 6 basis points to 3.92%.
Gold experienced a slight decline, dropping by 0.3%. Oil prices, meanwhile, fell by 1.2%, with West Texas Intermediate crude projected to close at its lowest levels since early February 2024. Bitcoin (BTC/USD) gained 1% but remains below the $60,000 mark.
Wednesday’s Performance in Major US Indices and ETFs
| Index | Price | 1-day %chg |
|—|—|—|
| Russell 2000 | 2,152.99 | 0.6% |
| S&P 500 | 5,606.52 | 0.2% |
| Nasdaq 100 | 19,747.92 | 0.1% |
| Dow Jones | 40,818.92 | 0.0% |
According to Benzinga Pro data:
* The SPDR S&P 500 ETF Trust (SPY) rose 0.2% to $559.67.
* The SPDR Dow Jones Industrial Average (DIA) stalled at $408.62.
* The tech-heavy Invesco QQQ Trust Series (QQQ) edged 0.2% higher to $481.13.
* The iShares Russell 2000 ETF (IWM) increased 0.6% to $214.01.
* The Utilities Select Sector SPDR Fund (XLU) and The Materials Select Sector SPDR Fund (XLB) outperformed, both gaining 0.9%.
* The Financials Select Sector SPDR Fund (XLF) lagged, declining by 0.4%.
Wednesday’s Stock Movers
* Target Corp. (TGT) rallied over 12% on stronger-than-expected quarterly results. The retail giant also saw several analysts raise their price target on the stock.
* Macy’s Inc. (M) plummeted 13% after reducing revenue guidance for the fiscal year.
* Other major companies reacting to earnings were TJX Companies Inc. (TJX) up 6.2%, Analog Devices Inc. (ADI), Dycom Industries Inc. (DY), down 8.5%, Keysight Technologies Inc. (KEYS), up 12%, Toll Brothers Inc. (TOL), up 5.9%, and Coty Inc. (COTY), up 6.1%.
* Ford Motor Co. (F) rose 1.4% after announcing the halt of production for an all-electric three-row SUV.
