S&P500 and Nasdaq Index: Tech Stocks Slip as Market Awaits Powell’s Outlook

S&P 500 Trades Lower but Remains Near Record Levels

The S&P 500 slipped on Wednesday but remains close to record highs as traders await commentary from Federal Reserve Chair Jerome Powell later this week. Despite Wednesday’s decline, all three major indices are on track to finish the week in positive territory. The Nasdaq Composite and S&P 500 have gained approximately 1.6% and 1.2% respectively, while the Dow Jones Industrial Average is up 0.4%.

At 15:01 GMT, the Dow Jones Industrial Average is trading 40824.48, down 66.01 or -0.16%. The S&P 500 Index is at 5617.67, down 3.18 or -0.06% and the Nasdaq Composite is trading 17891.68, down 27.31 or -0.15%.

Sector Performance Mixed Amid Market Caution

Sector performance was mixed, reflecting cautious sentiment in the market. Consumer Discretionary and Technology sectors saw declines, with Consumer Discretionary down 0.43% and Technology losing 0.17%. On the other hand, Financials and Real Estate sectors posted gains, with Financials up 0.31% and Real Estate advancing 0.2%. The Health sector remained flat, showing no significant movement.

Cybersecurity Stocks Hit Record Highs

Cybersecurity stocks continue to shine, with ETFs like First Trust Nasdaq Cybersecurity ETF (CIBR) and Amplify Cybersecurity ETF (HACK) reaching all-time highs. This marks the first such achievement for CIBR since February 2024 and for HACK since November 2021, as both ETFs extended their winning streak to eight consecutive days.

Corporate Earnings Impact Market Sentiment

In corporate news, Snowflake shares fell 10% despite beating quarterly expectations and slightly raising full-year product revenue guidance. Retailer Urban Outfitters experienced a sharper drop of over 13% after reporting disappointing same-store sales for the second quarter.

Conversely, Crocs gained more than 1% following an upgrade from Williams Trading, while Agilent Technologies and Nordson both saw share price increases after surpassing earnings expectations.

Market Focus Shifts to Powell’s Upcoming Speech

Traders are now focusing on Powell’s upcoming speech at the Jackson Hole Economic Symposium, hoping for insights into future rate policy. With the market fully pricing in a rate cut next month, as indicated by the CME Group’s FedWatch tool, the size of the anticipated cut remains a topic of debate. The Fed’s July meeting minutes suggested that most participants support a rate cut in September if economic data aligns with expectations.

Market Forecast

Given the mixed sector performance and ongoing corporate earnings reports, the market is likely to remain volatile in the short term. Traders should brace for potential fluctuations as they await Powell’s comments, which could either reinforce or challenge the current bullish momentum.