US stocks rose for the second day in a row on Wednesday. The S&P 500 reached a record high, as technology stocks led and investors ignored geopolitical worries.
The Dow Jones Industrial Average jumped 400 points or 0.95%, while S&P 500, Nasdaq Composite, and Nasdaq Composite all gained 0.7%.
Super Micro Computer, a 7% jump, was the only tech giant to rise more than 1%.
The strong performance of the day helped to recover losses earlier in the month and push the major indices back into positive territory.
Boeing shares drop amid strike troubles
Boeing shares dropped nearly 3% following the aerospace giant’s withdrawal of a wage increase offer to 33,000 machinists who have been on strike since mid September.
The talks have again stalled, raising fears about the financial impact on the company.
S&P Global Ratings estimates that the strike is costing Boeing more than $1 billion per month.
Alphabet’s shares fell 1.7% on the news that the US Department of Justice is moving towards breaking up Google due to antitrust concerns.
Blackstone’s stock also fell by nearly 1%, after Piper Sandler lowered its rating. The company cited that investors had already priced in much of the recent gains.
Focus on Fed Minutes and Economic Data
The Federal Reserve meeting minutes for September were released and the market was focused on them.
In that meeting, for the first cut in interest rates since over four years, the Fed reduced the rate by 50 basis point.
Investors will be keen to examine the minutes in light of the robust data on the labor market from last week to determine the likelihood of a rate increase.
The upcoming inflation data will also play a crucial role in determining the market’s sentiment and Fed policy going forward.
Chinese stocks fall
On Wednesday, US-listed Chinese stocks such as JD.com and Nio continued to decline, adding to the losses of the previous session. Alibaba dropped 3.2%, JD.com fell 4.6%, while Nio slid by 2.4%.
The sale of shares followed renewed concerns about China’s stability. This was exacerbated by the lack of new stimuli measures from top Chinese economic planners.
The Shanghai Composite Index fell 6.6%, while the Shenzhen Index dropped 8.7%. This is its worst day since 1997.
Prices of oil fall again
Brent and West Texas Intermediate crude oil prices both extended their losses since Tuesday as concerns over ongoing tensions in Middle East were outweighed by a strong outlook for supply.
The American Petroleum Institute reported a surge in US crude oil stocks of 10.9 million barrels during the week ending on Friday last week, which has contributed to the fall in prices.
Despite geopolitical tensions threatening the global oil supply, rising US stocks and the available production capacity in OPEC and their allies has kept prices under control.
Oil facilities were closed in Tampa, Florida as Hurricane Milton approached.
GasBuddy data showed that more than 17% of petrol stations in Florida were out of fuel due to residents evacuating the area.
Brent crude oil traded at $76.28 a barrel at the time this article was written, down by 1.2%. WTI crude, on the other hand, was only 1.1% lower, at $72.80 a barrel.
The mixed bag of events on the market shows how investors must maintain a delicate balance between macroeconomic signals and sector-specific challenges.
The ICD published the following article: Tech rally raises S&P to record highs as Microsoft, Amazon and Apple lead; Dow jumps by 400 points
