Nasdaq 100, Dow Jones, S&P 500 News: Gains Capped by Real Estate, Tech Sector Pressure

Dow Continues Its Ascent, Aiming for a Sixth Consecutive Gain

The Dow Jones Industrial Average is currently ticking upward at the mid-session on Wednesday, aspiring to secure its sixth successive day of gains amidst a broader market retreat driven by weaknesses in the tech sector. This effort comes on the heels of the S&P 500 and the Dow each closing higher in recent sessions, marking some of the longest winning streaks since late 2023.

At 15:54 GMT, the Dow Jones Industrial Average is trading 38961.63, up 77.37 or +0.20%. The S&P 500 Index is at 5182.74, down 5.48 or -0.11% and the Nasdaq 100 Index is trading 16285.74, down 46.82 or -0.29%.

Current Trends in Tech and Major Stocks

Today, the market is dealing with mixed influences, with notable stocks like Tesla and Uber experiencing declines, alongside major tech entities such as Microsoft, Nvidia, and Alphabet, which are currently dropping between 0.3% and 1.1%. This downturn is coinciding with an increase in the 10-year Treasury yield, which is reversing its recent downward trend and impacting investor confidence particularly in tech and megacap stocks.

Investors Monitoring Federal Reserve’s Next Moves

Investors are actively pricing in the possibilities of future rate cuts, with the odds for a reduction in September now higher than they were a week ago. This adjustment in expectations follows a string of upbeat earnings and a softer-than-anticipated labor market report, hinting at a potentially less aggressive stance on interest rates by the Federal Reserve. Market participants are attentively listening for any new cues from today’s speeches by key Fed officials, which could provide further insights into the central bank’s approach to monetary easing.

Sector-Specific Movements and Key Stock Updates

The rate-sensitive real estate sector is currently leading declines, dropping by 0.8%. Specific stocks are also under the spotlight, with Uber’s shares falling significantly after the company reported lower-than-expected bookings revenue. Similarly, Intel’s stock is declining after the company adjusted its revenue forecasts downward following new export restrictions announced by the U.S. Commerce Department.

Short-Term Forecast

With the earnings season nearing its conclusion and the market’s attention turning to upcoming economic reports, investors are bracing for next week’s consumer price data to gauge inflation trends. This information will be crucial in shaping expectations for future Federal Reserve actions. Despite recent market fluctuations, the prevailing sentiment suggests a cautiously optimistic outlook, supported by solid fundamentals and a potentially stabilizing economic environment.

Technical Analysis

The S&P 500’s short-term, intermediate-term and long-term uptrends are intact as we approach the mid-session on Wednesday as bullish investors continue to defend the 50-day moving average at 5186.71. Trader reaction to this indicator will set the tone into the close. Earlier in the session, this intermediate trend indicator was tested successfully.

The nearby range is 5333.50 to 4963.50. The market is currently trading on the strong side of its pivot at 5148.50, providing additional support.