Stock Market Today: Dow Gains with Energy Boost, Tech Struggles
Market Overview
The Dow managed to eke out a gain on Wednesday, marking its third consecutive day in the green. The rise was supported by energy stocks, although tech stocks faced a slump, keeping overall gains in check. Investors are eagerly awaiting further economic data scheduled for Thursday, which could impact the Federal Reserve’s outlook ahead of a crucial decision next week.
Market Performance
By 16:00 ET (20:00 GMT), the Dow had risen by 37 points, a modest 0.1% increase. However, the S&P 500 and Nasdaq both faced declines of 0.2% and 0.5%, respectively.
Energy Sector Boom
Energy stocks stole the spotlight as oil prices surged, driven by unexpected declines in U.S. inventories. Companies like Valero Energy Corporation, Marathon Petroleum Corp, and APA Corporation led the charge, benefiting from a jump in oil prices fueled by dwindling domestic supplies and geopolitical tensions.
Tech Giants Struggle
Tesla shares plummeted over 4% after a downgrade from Wells Fargo, citing concerns about the company’s growth prospects. Meanwhile, Dollar Tree saw a 14% drop following disappointing earnings and plans to shutter numerous stores.
Chip Stocks in Focus
Nvidia faced a more than 1% dip despite a price target upgrade from BofA Securities. On the flip side, Intel stumbled over 4% after reports emerged that the Pentagon had abandoned a funding plan, adding pressure to the chip sector.
TikTok’s Fate Hangs in Balance
The U.S. House of Representatives passed a bill that could force the sale of TikTok within six months due to national security concerns. If implemented, this move could benefit rival platforms like Meta’s Instagram and Google’s Youtube.
Upcoming Economic Data
Investors are eagerly awaiting Producer Price Index (PPI) inflation and retail sales data for February, set to be released on Thursday. These figures will offer insights into inflation trends and consumer spending patterns, crucial factors ahead of the Fed’s upcoming meeting.
The Fed is expected to maintain interest rates during its March meeting, with expectations of a potential rate cut in June.
Goldman Sachs Group Inc predicts the Fed will keep rates steady in March and initiate an easing cycle in June.
