Stocks on Wall Street drifted higher on Wednesday, with the S&P 500 up 0.3% in late trading. The Dow Jones Industrial Average also saw gains, up 0.7%, while the Nasdaq composite remained flat.
One of the standout performers of the day was Trump Media & Technology Group, whose shares surged 11.3%. The company, known for the Truth Social platform, has seen a surge in interest from supporters of former President Donald Trump.
Merck also saw a significant increase, climbing 4.9% after receiving approval for its treatment for pulmonary arterial hypertension. Cintas, a provider of work uniforms and office supplies, reported stronger profits than expected, leading to a 7.3% jump in its stock price.
On the flip side, Nvidia and GameStop experienced losses. Nvidia, which had seen a significant increase in its stock price earlier in the year, fell 3.5%. GameStop, the original meme stock, tumbled 15% despite delivering a profit for the latest quarter.
In the bond market, Treasury yields slipped, with the 10-year Treasury falling to 4.19%. The upcoming highlight for the bond market will be the release of the latest monthly update on consumer spending, which could impact interest rates set by the Federal Reserve.
Overall, the stock market has been on a winning streak, with the S&P 500 set for a fifth straight winning month. However, concerns remain about the need for strong profit growth to justify current stock prices, as well as the potential impact of inflation on interest rates.
Stock markets abroad were mixed, with Chinese stocks performing poorly despite reassurances from the country’s central bank governor about the recovery of the property industry.
As traders look ahead to potential interest rate cuts by the Federal Reserve, the market remains cautiously optimistic about the future direction of stocks and bonds.
