S&P 500 Hits All-Time Highs, Nasdaq 100 Tops 20K Ahead Of Key Economic Data: What's Driving Markets Wednesday?

The S&P 500 reached record highs during Wednesday morning trading in New York, while the tech-heavy Nasdaq 100 climbed past the 20,000-point mark, a level last seen on July 17.

Semiconductor stocks outperformed, driven by anticipation of Micron Technology Inc.’s MU earnings report, due after the market close on Wednesday.

Yet, Wall Street showed sideways performance across major indices as investors cautiously digested positive stimulus news from China, which boosted market sentiment on Tuesday, and looked ahead to upcoming economic data.

On Thursday, investors will turn their attention to the final second-quarter gross domestic product report. The second estimate already showed the U.S. economy growing at a robust 3% pace for the quarter ending in June.

Weekly jobless claims will also be closely monitored, especially after the latest Conference Board Consumer Confidence Index revealed growing labor market concerns among U.S. households.

Friday brings the release of the personal consumption expenditures price index for August, the Federal Reserve’s preferred inflation gauge. This data could provide critical clues about the expectations for the November rate cut.

The U.S. dollar index edged higher Wednesday, supported by a slight rise in Treasury yields. Oil prices dipped by 1% but pared heavier losses after a larger-than-expected draw in crude oil inventories suggested continued strong demand.

In the crypto space, Bitcoin BTC/USD fell 0.8%, retreating from an intraday high of $64,800 – its highest level since late July.

Wednesday’s Performance In Major US Indices, ETFs

Major Indices	Price	1-day %chg
Nasdaq 100	20,003.52	0.3%
S&P 500	5,732.42	0.0%
Russell 2000	2,214.40	-0.4%
Dow Jones	41,986.73	-0.5%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY flattened at $570.76.
• The SPDR Dow Jones Industrial Average DIA flattened at $420.90.
• The tech-heavy Invesco QQQ Trust Series QQQ rose 0.2% to $486.27.
• The iShares Russell 2000 ETF IWM fell to $219.22.
• The Technology Select Sector SPDR Fund XLK outperformed, up 0.4%. The Energy Select Sector SPDR Fund XLE lagged, down 0.9%.

Wednesday’s Stock Movers

• Duolingo Inc. DUOL rallied 6% after Evercore ISI raised the price target from $270 to $335.
• Fortrea Holdings Inc. FTRE tumbled nearly 10% after Jefferies downgraded the stock from Buy to Hold.
• Vistra Corp. VST rallied nearly 5% after Jefferies raised the price target from $99 to $137.
• Ford Motor Co. and General Motors Co. fell 4.4% and 5%, respectively, after receiving a downgrade from Morgan Stanley.
• Hewlett Packard Enterprise Company HPE rallied 4.9% after Barclays upgraded the stock from Equalweight to Overweight, raising the price target from $20 to $24.
• Companies reporting earnings after the close include Micron Technology Inc and Jefferies Financial Group Inc. JEF.

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