Rally wavers but Dow edges higher for 6th straight session

May 9, 2024

1 minute read

People walk near the New York Stock Exchange.Leonardo Munoz/VIEWpress via Getty Images

US stocks were mixed Wednesday, with a sell-off in tech names causing a broader stock rally to waver after a streak of gains.

Still, the Dow Jones Industrial Average managed to climb for the sixth day in a row.

Tech stocks slid, with downbeat Uber earnings sparking a 5.7% decline in the stock, while Intel fell after lowering revenue guidance for the quarter. Tesla shares dropped nearly 2% amid reports that claims over its autopilot capabilities misled investors.

Yet earnings overall market have been coming in strong. The S&P 500 is on track to post at least 7% year-per-year earnings growth over the first quarter, FactSet estimated.

“The better-than-expected economy of the last 12 months and the enhanced prospects we see through the end of next year have been main ingredients in our rationale to bump up our economic outlook and earnings estimates for the SPX,” Wells Fargo said in a note on Wednesday.

Meanwhile, traders are puzzling over the outlook for Fed rate cuts this year. Bond yields edged higher as the latest Treasury auction was met with so-so demand.

Investors see a 91% chance the Fed will keep rates unchanged at its June policy meeting, according to the CME FedWatch tool, up from 49% a month ago.

Here’s where US indexes stood at the 4:00 p.m. closing bell on Wednesday:

Here’s what else happened today:

In commodities, bonds, and crypto:

West Texas Intermediate crude oil ticked higher 0.96% to $79.13 a barrel. Brent crude, the international benchmark, rose 0.16% to $83.71 a barrel.
Gold dipped 0.15% to $2,310.73 per ounce.
The 10-year Treasury yield rose three basis points to 4.5%.
Bitcoin dropped 1.45% to $62,194.