Investors push S&P 500 and Nasdaq to record highs, driven by tech stocks like Tesla and Nvidia
The S&P 500 reached new highs in Wednesday’s shortened trading session as investors shrugged off sluggish economic data, reports CNBC.
The broad market index gained 0.51 percent, closing at 5,537.02. The Nasdaq Composite rose 0.88 percent, ending at 18,188.30, driven by rallies in megacap technology stocks like Tesla and Nvidia. Both indexes hit fresh all-time highs and closed at record levels.
The Dow Jones Industrial Average dropped 23.85 points, or 0.06 percent, finishing at 39,308.00. The 30-stock index faced pressure from a nearly 1.7 percent decline in UnitedHealth.
Trading volume was light on Wednesday, with the New York Stock Exchange closing early at 1 pm ET. The exchange will remain closed on Thursday for Independence Day.
Investors analyzed Wednesday morning's data, which indicated a weakening economy ahead of Friday’s June jobs report. ADP reported less private payroll growth than expected in June, and weekly jobless claims were higher than economists predicted.
The Institute for Supply Management's reading of service sector activity, released later in the morning, was significantly weaker than anticipated and indicated a contraction.
These reports might concern investors about the economy's health, but stocks found support from falling bond yields. Traders grew hopeful that the Federal Reserve has enough evidence of economic tightening to start cutting interest rates.
The rate on the 10-year US Treasury fell for the second consecutive day on Wednesday.
Tesla’s stock rose 6.5 percent after a better-than-expected deliveries report, marking its seventh straight session of gains and its first winning streak of this length in 2024.
“Everybody hated Tesla three months ago. But now, they’re having their day in the sun,” said Larry Tentarelli, chief technical strategist at the Blue Chip Daily Trend Report. Tesla’s rally sets “a bullish tone for the market overall.”
Nvidia, a leader in artificial intelligence, jumped about 4.6 percent, contributing to the Nasdaq's strong performance.
Following Wednesday’s early closing bell, traders will look for minutes from the June Federal Open Market Committee meeting, expected at 2 pm ET.
