The U.S. stock market is seeing a slight dip on Wednesday, as the momentum from earlier in the week begins to slow down. The S&P 500 is down 0.3%, erasing some of the gains from the previous two days. The Dow Jones Industrial Average is also down 0.3%, while the Nasdaq composite is 0.2% lower.
One standout performer is Tesla, which saw a 9.7% surge in its stock price after announcing plans to accelerate production of new, more affordable vehicles. This news overshadowed a 55% drop in profit reported by the company. Tesla is part of the group of stocks known as the “Magnificent Seven,” which were major drivers of the U.S. stock market’s gains last year.
Investors are now looking to companies to deliver strong profits in order to justify their high stock prices. However, rising Treasury yields are putting pressure on stocks, following a string of strong economic reports that have diminished hopes for interest rate cuts by the Federal Reserve.
On the losing side, railroad operator Norfolk Southern, Bunge Global, and Teledyne Technologies all saw declines in their stock prices after reporting weaker-than-expected results. On the other hand, Hasbro and Mattel both saw gains after reporting better-than-expected profits.
In international markets, Japan’s Nikkei 225 saw a 2.4% jump, fueled by a weakening Japanese yen. Stock indexes in Asia and Europe also rose, indicating a positive global market sentiment.
Overall, investors are closely watching company earnings and economic indicators to gauge the future direction of the stock market.
