In a notable rebound, US stocks closed higher on Wednesday, fueled by a strong performance in the tech sector. Investors remained on edge as they awaited fresh inflation data, while also grappling with the unexpected turn of events surrounding spot Bitcoin ETFs.
The Dow Jones Industrial Average (^DJI) marked a gain of over 0.4%, while the benchmark S&P 500 (^GSPC) exhibited a 0.6% rise. The Nasdaq Composite (^IXIC) emerged as the frontrunner among major averages, posting a substantial gain of about 0.7%.
Semiconductor giant Nvidia (NVDA) reached yet another record high on Wednesday, underscoring the resilience of the tech sector. Simultaneously, tech behemoths Meta (META) and Alphabet (GOOGL, GOOG) touched 52-week highs during the trading session, further contributing to the market’s positive momentum.
Investors approached the market cautiously, with Thursday’s eagerly anticipated US consumer inflation reading for December looming on the horizon. Eyes were peeled for any indications of a cooling trend that could potentially prompt the Federal Reserve to reevaluate its policy stance. Concerns have recently surfaced regarding the market potentially pricing in an excessive number of interest rate cuts in 2024, as the initial confidence in an early cut begins to fade.
Bitcoin (BTC-USD) experienced fluctuations but managed to hold above the $45,000 mark following a tweet from the Securities and Exchange Commission’s X account. The tweet, falsely announcing the approval of spot Bitcoin ETFs, triggered significant swings in the leading cryptocurrency on Tuesday. The SEC promptly attributed the incident to a hack and announced an investigation. A spokesperson from the SEC confirmed on Wednesday that the agency is collaborating with law enforcement entities, including the SEC’s Office of the Inspector General and the FBI.
Market participants eagerly awaited the decision on whether financial giants like BlackRock and Ark Invest would receive approval to offer spot Bitcoin ETFs, with the decision expected later on Wednesday.
Adding to the market’s complexity is the imminent start of the fourth-quarter earnings cycle, set to kick off on Friday with prominent Wall Street banking heavyweights such as JPMorgan Chase (JPM). The upcoming earnings season is considered critical for stocks, especially following their turbulent start to 2024.
In conclusion, the relentless momentum of the tech sector stocks continues to play a pivotal role, steering the trajectory of US markets and underscoring the sector’s influential presence in the ongoing market dynamics. Investors are closely monitoring corporate performance and guidance for insights into the trajectory of the broader market.
Source: Yahoo Finance
