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The Dow, S&P 500 and Nasdaq are rising, while technology stocks are leading the way, with the Fed’s Powell on deck

Posted on by Taylor Reeves
The Dow, S&P 500 and Nasdaq are rising, while technology stocks are leading the way, with the Fed’s Powell on deck

U.S. stocks rose on Wednesday as the technology industry helped set the stage for new record highs and investors waited to hear guidance from Federal Reserve Chairman Jerome Powell on what’s next for interest rates.

The Dow Jones Industrial Average (^DJI) rose 0.4%, or over 200 points, while the S&P 500 (^GSPC) rose 0.5% after hitting an all-time closing high. The tech-heavy Nasdaq Composite (^IXIC) gained around 0.9%.

Cloud and e-commerce giant Amazon (AMZN) hit all-time intraday highs on Wednesday, as did iPhone maker Apple (AAPL).

Salesforce (CRM) shares rose sharply in early trading after the software maker’s above-average quarterly sales boosted hopes for its artificial intelligence products. Shares of Okta (OKTA) and Marvell (MRVL) also jumped on well-received earnings reports, setting a positive tone for the tech industry.

Anticipation is building for Powell’s later appearance in New York, and Wall Street is eager to find out whether growing confidence in a rate cut in December is justified. Fed officials have signaled support for further easing as they prepare for their final meeting of the year.

The central bank is widely expected to cut interest rates at its December 18 meeting. Traders see a nearly 74% chance of a 25 basis point cut, compared with about 66% a week ago, according to the CME FedWatch tool.

A measure of private payrolls showed that companies added 146,000 jobs in November, slightly below economists’ estimates and a slowdown from the downwardly revised 184,000 jobs in the previous month. The ADP data suggests that the labor market is weakening – but not too much. The report is one of several key economic releases this week and precedes Friday’s all-important monthly jobs report.

Investors also kept a close eye on political unrest in France after unrest in South Korea depressed stock prices there. French MPs will vote on a motion of no confidence that could lead to the fall of the government. Meanwhile, the South Korean president is now facing impeachment proceedings after plunging the country into a political crisis by briefly declaring martial law.

In corporate news, UnitedHealth Group (UNH) paused its investor day after insurance unit UnitedHealthcare CEO Brian Thompson was fatally shot in Manhattan on Wednesday morning.

LIVE 7 updates

  • Ines Ferré

    Nasdaq and S&P 500 hover near record highs as tech sector gains

    The S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) hit intraday record highs on Wednesday as markets edged higher, buoyed by technology stocks.

    The S&P 500 Tech Sector (XLK) performed better, up about 1.3%.

    The Dow Jones Industrial Average (^DJI) also rose after a strong quarterly report from software manufacturer Salesforce (CRM).

  • Ines Ferré

    UnitedHealth: “Deeply saddened and shocked” by the death of CEO Brian Thompson

    UnitedHealth Group (UNH) released a statement Wednesday following the fatal shooting in Manhattan of UnitedHealthcare CEO Brian Thompson.

    “We are deeply saddened and shocked by the death of our dear friend and colleague Brian Thompson,” the company statement said.

    “Brian was a valued colleague and friend to everyone who worked with him. We are working closely with the NYPD and ask for your patience and understanding during this difficult time. Our condolences go out to Brian’s family and everyone who was close to him.”

    Thompson was shot outside the Hilton hotel in downtown Manhattan, where the company was holding its investor day.

    UnitedHealth canceled the event this morning after the shooting.

  • Ines Ferré

    Trump picks Peter Navarro as senior adviser on trade and manufacturing

    President-elect Donald Trump has asked Peter Navarro to become senior adviser on trade and manufacturing.

    Navarro served as a White House trade adviser during Trump’s first term.

    “I am pleased to announce that Peter Navarro, a man who has been treated horribly by the Deep State, or whatever you want to call it, will serve as my senior adviser on trade and manufacturing,” Trump wrote the social media platform Truth Gesellschaftlich on Wednesday.

    “During my first term, few have been more effective or persistent than Peter in enforcing my two sacred rules: Buy American, Hire American,” Trump wrote.

  • Ines Ferré

    Amazon hits all-time high as Wall Street reiterates bullish view of AI cloud capabilities

    Amazon (AMZN) hit an all-time high on Wednesday during the company’s AWS re:Invent 2024 cloud conference. Shares of the e-commerce and cloud giant rose more than 2% in early trading.

    On Wednesday, numerous Wall Street analysts reiterated their bullish buy recommendations for the stock, citing the company’s capabilities in artificial intelligence.

    The stock has 77 Buy ratings, 5 Holds and zero Sells.

    Amazon shares are up 43% year-to-date.

  • Ines Ferré

    Foot Locker shares plunge 12% as the retailer lowers its forecasts, saying spending trends have “moderated.”

    Foot Locker (FL) shares plunged 12% in early trading after the footwear retailer cut its full-year forecast while missing third-quarter estimates, citing weak consumer demand.

    “After the back-to-school peak in August, consumer spending weakened and the advertising environment was stronger than expected,” the company said in its quarterly press release.

    The stock has fallen more than 30% since the start of the year.

  • Ines Ferré

    Stocks rise as technology advances, and Salesforce jumps

    U.S. stocks rose slightly on Wednesday as the technology sector rose, led by shares of Salesforce (CRM).

    The Dow Jones Industrial Average (^DJI) rose 0.4%, or about 200 points, while the S&P 500 (^GSPC) rose 0.3% after hitting an all-time closing high. The tech-heavy Nasdaq Composite (^IXIC) gained 0.7%.

    Salesforce (CRM) shares rose around 8% in early trading after the software maker’s quarterly revenue increase boosted hopes for its AI products.

    Investors await Fed Chairman Jerome Powell’s appearance in New York on Wednesday afternoon. Investors will be looking to his commentary for clues about the direction of Fed policymakers’ next rate move. The Fed’s final interest rate policy meeting of the year is scheduled for December 18th.

  • Jenny McCall

    Good morning Here’s what’s happening today.

    Economic data: MBA Mortgage Applications (week ending November 29); ADP Private Payrolls (November); S&P Global US Services PMI and US Composite PMI (November final); ISM Services Index (November); ISM Service Prices Paid (November); Factory orders and durable goods orders (October final)

    Earnings: American Eagle Outfitters (AEO), Campbell’s (CPB), ChargePoint (CHPT), Chewy (CHWY), Cracker Barrel (CBRL), Dollar Tree (DLTR), Five Below (FIVE), Foot Locker (FL), Hormel Foods (HRL ), RBC (RBC), Victoria’s Secret (VSCO)

    Here are some of the biggest stories you may have missed overnight and this morning:

    Why Wall Street is betting on a strong economy in 2025

    GM covers $5 billion in losses from China deals

    Wells Fargo gives S&P’s most optimistic forecast yet for 2025

    EU investigates Nvidia hardware bundling as part of review of Run:ai deal

    Marvell stock rises on boost to fourth-quarter AI sales forecast

    Stellantis chairman selects Apple CFO Maestri as the automaker’s new CEO

    Small caps should shine until the dollar’s “wrecking ball” hits

    Wells Fargo is selling its San Francisco headquarters, WSJ reports

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