The Nasdaq and S&P 500 surged to record highs on Wednesday, boosted by Nvidia and other major stocks as investors anticipated upcoming inflation data and quarterly earnings.
- Milestones Reached: The Nasdaq marked its seventh consecutive record close, while the S&P 500 achieved its sixth straight high, crossing 5,600 for the first time.
- Fed Chair’s Influence: Federal Reserve Chair Jerome Powell hinted at a possible interest-rate cut in September, despite being uncertain about inflation falling to 2%.
- Semiconductor Surge: The Philadelphia semiconductor index soared 2.4%, driven by Taiwan Semiconductor Manufacturing Co’s strong quarterly revenue.
- Sector Gains: All 11 S&P 500 sectors rose, with information technology up 1.63% and materials gaining 1.34%.
- Trading Volume: U.S. exchanges saw light trading, with 10 billion shares traded compared to the 20-session average of 11.5 billion.
- Upcoming Reports: Key inflation data, including the Consumer Price Index on Thursday and the Producer Price Index on Friday, are highly anticipated. Expectations for a September rate cut have increased to 74%.
- Earnings Season: Major banks’ reports on Friday will kick off the second-quarter earnings season, testing the sustainability of high valuations for top stocks.
- Stock Movements: Intuit fell 2.6% after announcing plans to lay off 10% of its workforce. Illumina jumped over 6% following its acquisition of Fluent BioSciences.
