NEW YORK – U.S. stocks hovered near their all-time highs on Wednesday, as financial markets took a breather following two significant days fueled by optimism that the Israel-Iran conflict will not hinder the global oil supply.
Immediate Impact
The S&P 500 remained almost unchanged, drifting through a quiet trading day and sitting just 0.8% below its record high set in February. The Dow Jones Industrial Average saw a slight dip, losing 106 points or 0.2%, while the Nasdaq Composite edged up by 0.3%.
Key Details Emerge
In the oil market, which has been a focal point this week, crude prices stabilized after a steep drop of approximately $10 per barrel over the past two days. Benchmark U.S. crude rose by 55 cents to $64.92 per barrel, although it remains below pre-conflict levels.
U.S. crude oil prices increased by 55 cents, stabilizing at $64.92 per barrel.
Industry Response
Despite stronger-than-expected profit and revenue for the latest quarter, FedEx shares fell 3.3% due to a forecast that missed profit expectations for the current quarter. Meanwhile, General Mills saw a 5.1% drop after reporting weaker revenue, although its profit surpassed forecasts. The company anticipates a potential 10% to 15% decrease in underlying profit for the upcoming fiscal year.
By the Numbers
- S&P 500: -0.02 to 6,092.16 points
- Dow Jones: -106.59 to 42,982.43 points
- Nasdaq: +61.02 to 19,973.55 points
What Comes Next
On the upside, Bumble surged by 25.1% after announcing a workforce reduction of about 30%, aiming to save up to $40 million annually. QuantumScape rallied 30.9% following a breakthrough in solid-state battery production, a technology promising to enhance electric vehicle performance.
Background Context
The announcement comes as the Federal Reserve maintains a cautious stance on interest rates. Treasury yields remained steady, with the 10-year Treasury yield easing slightly to 4.28%. Fed Chair Jerome Powell reiterated the need to assess the impact of U.S. tariffs before making further policy adjustments.
“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” said Fed Chair Jerome Powell.
Expert Analysis
According to Frances Lun, CEO of GEO Securities in Hong Kong, “The world can now move on to face other difficult choices like tariffs and things like that. So I think the market is well on its way to rebound and could again reach new levels.”
Regional Implications
Internationally, European indexes experienced modest declines, while Asian markets saw gains, with Hong Kong and Shanghai indices rising by 1.2% and 1%, respectively.
The timing is particularly significant as the market navigates geopolitical tensions and economic policy uncertainties. As the situation develops, investors and analysts alike will be closely monitoring the global economic landscape for further cues.
