U.S. Stocks Drift to Mixed Finish as Markets Worldwide Experience Lull
In a day marked by relative quiet in financial markets worldwide, U.S. stocks ended with a mixed finish on Wednesday. The S&P 500 slipped slightly from its all-time high, the Dow Jones Industrial Average rose, and the Nasdaq composite dipped.
The bond market also saw minimal activity, with Treasury yields ticking higher. Stock markets abroad made mostly modest moves, reflecting the overall lull in global financial markets.
One area of notable action was the oil market, where prices continued to climb. Benchmark U.S. crude rose to $79.72 per barrel, while Brent crude reached $84.03 per barrel. The upward trend in oil prices has contributed to higher inflation, which has in turn tempered expectations for interest rate cuts by the Federal Reserve.
Despite the current pause in market activity, the expectation remains for the Fed to begin cutting rates in June to alleviate pressure on the economy and financial system. The stock market has already rallied in anticipation of these cuts, but concerns have been raised about the potential for overvaluation.
Renowned investor Jeremy Grantham warned that the U.S. stock market may be looking more expensive than it has in almost all of its history. He cautioned that doubling the price of an asset could halve its future return, suggesting a potential downturn in the market.
On Wall Street, Dollar Tree saw a significant drop in its stock price after reporting weaker-than-expected results for the latest quarter. In contrast, Williams-Sonoma experienced a surge in its stock price following a strong profit report and increased dividend.
Energy producers also saw gains, buoyed by the rise in oil prices. Stocks in the S&P 500 rose, with Valero Energy, Marathon Petroleum, and Exxon Mobil among the top performers.
While a majority of stocks in the S&P 500 ended up rising, losses from Big Tech companies like Nvidia weighed down the index. In the bond market, Treasury yields rose slightly, reflecting expectations for future Fed actions.
Overall, stock markets abroad saw modest movements, with indexes in Europe and Asia experiencing mixed results. The day’s events underscored the current state of uncertainty and caution in global financial markets.
AP Business Writer Yuri Kageyama contributed to this report. Copyright 2024 The Associated Press.
