Nasdaq 100, Dow Jones, S&P 500 News: Modest Gains for Tech Stocks as FedEx and Whirlpool Surge

Modest Performance in Wall Street’s Main Indexes

Wall Street’s major indexes are showing marginal results shortly before the mid-session on Wednesday, with technology stocks striving to stabilize after recent losses. Investors are eagerly anticipating a crucial inflation report later this week to understand the future path of monetary policy.

At 16:00 GMT, the Dow Jones Industrial Average is trading 39128.31, up 16.15 or +0.04%. The S&P 500 Index is at 5472.68, up 3.38 or +0.06% and the Nasdaq 100 Index is trading 17786.18, up 68.53 or +0.39%.

Technology Stocks Recover Slightly

Nvidia edged up 0.7%, continuing its modest recovery after a significant selloff that erased $430 billion from its market value. The broader Philadelphia Semiconductor index climbed 0.5%, bolstered by a 1% increase in Micron Technology ahead of its quarterly earnings release. Apple also rose 1.2% following an upgrade by Rosenblatt from “neutral” to “buy.”

Broader Market Implications

Art Hogan, chief market strategist at B Riley Wealth, noted the ongoing debate on whether the market’s focus should remain on top stocks like Nvidia, Apple, and Microsoft, or shift to other components of the S&P 500. This uncertainty is expected to persist until the second-quarter earnings season provides more clarity.

Significant Movers

FedEx surged nearly 13% after forecasting a fiscal 2025 profit above expectations. Whirlpool jumped 12.4% amid reports that Robert Bosch is considering a bid for the U.S. appliances manufacturer. The Nasdaq, S&P 500 information technology index, and the Philadelphia chip index all gained over 1% on Tuesday, signaling a rebound for tech stocks.

Economic Data and Federal Reserve Focus

Investors are closely watching several economic data releases this week, culminating in the personal consumption expenditures price index on Friday, the Federal Reserve’s preferred inflation gauge. Current market sentiment indicates a nearly 60% chance of a 25-basis point rate cut in September and two cuts by the end of the year, according to LSEG’s interest rate probabilities app.

Bank and Sector-Specific Updates

Shares of major U.S. banks, including JPMorgan Chase, Citigroup, and Bank of America, fell between 0.9% and 1.2% ahead of the Fed’s banking sector stress test results. The S&P 500 financial index dropped 0.6%. In contrast, Rivian soared 33% on news of Volkswagen’s planned $5 billion investment in the electric vehicle maker. Southwest Airlines fell 2.6% after cutting its second-quarter unit revenue forecast due to uneven travel demand, while General Mills declined 5.4% following a disappointing profit forecast and quarterly sales.

Market Forecast

Given the mixed signals across various sectors, the short-term market outlook remains uncertain. The anticipated inflation data will be pivotal in shaping expectations for Federal Reserve policy moves. Should the data indicate moderated price pressures, it could support a bullish trend, particularly for tech stocks that have shown resilience. Conversely, any signs of persistent inflation may prompt a cautious or bearish stance among investors.

Technical Analysis

The NASDAQ 100 E-mini Futures chart shows a strong uptrend, with prices above the 50-day and 200-day moving averages. The 50-day MA supports the intermediate trend, while the 200-day MA supports the long-term trend. Upside resistance is near 20,371, with downside support at 19,436.