U.S. Stocks Drift Lower Amid Hopes of Improved Trade War Outlook

Strategic Insights -

U.S. stocks traded lower on Wednesday, with the S&P 500 falling 0.6 percent, despite remaining within 4.2 percent of its record high. The Dow Jones industrial average dipped 244 points, or 0.6 percent, and the Nasdaq composite slipped 0.5 percent. Trading was relatively quiet ahead of Nvidia's quarterly earnings release, which was the main event for financial markets. Nvidia's stock slipped 0.5 percent before the release, but expectations were high for the bellwether of artificial-intelligence technology.

Key Takeaways:

  • The S&P 500 fell 0.6 percent, but remains within 4.2 percent of its record high, which it reached after charging higher amid hopes that the worst of the turmoil caused by President Trump's trade war may have passed.
  • The Dow Jones industrial average dipped 244 points, or 0.6 percent, and the Nasdaq composite slipped 0.5 percent.
  • Nvidia's stock slipped 0.5 percent before its quarterly earnings release, but expectations were high for the bellwether of artificial-intelligence technology.
  • Several retailers delivered better-than-expected results for the latest quarter, including Abercrombie & Fitch, which soared 14.7 percent, and Dick's Sporting Goods, which added 1.7 percent.
  • Okta fell 16.2 percent despite reporting better results for the quarter than Wall Street expected, while GameStop fell 10.9 percent after saying it had bought 4,710 Bitcoin, worth more than $500 million at its current price.
  • The yield on the 10-year Treasury rose to 4.47 percent from 4.43 percent late Tuesday, with the bond market showing relatively little reaction to the Federal Reserve's release of minutes from its latest meeting, which left its benchmark lending rate unchanged.

Statistics:

  • U.S. stocks traded lower, with the S&P 500 falling 0.6 percent and the Dow Jones industrial average dipping 244 points, or 0.6 percent.
  • The Nasdaq composite slipped 0.5 percent, while several retailers delivered better-than-expected results, including Abercrombie & Fitch, which soared 14.7 percent.
  • Okta fell 16.2 percent despite reporting better results for the quarter than Wall Street expected, and GameStop fell 10.9 percent after saying it had bought 4,710 Bitcoin, worth more than $500 million at its current price.
  • The yield on the 10-year Treasury rose to 4.47 percent from 4.43 percent late Tuesday.
  • Nvidia's stock slipped 0.5 percent before its quarterly earnings release.

Sources:

  • The New York Times
  • Bloomberg News
  • CNBC
  • Reuters
  • The Wall Street Journal