U.S. equity markets closed lower on Wednesday, driven by weakness in Financials, Consumer Services and Technology names that outweighed gains elsewhere.
At the New York Stock Exchange close, the Dow Jones Industrial Average fell 0.13%. The S&P 500 finished down 0.01%, and the Nasdaq Composite lost 0.16% at the session’s end.
Notable movers on the Dow
- Caterpillar Inc (CAT) led gains on the Dow, rising 4.40% (up 32.63 points) to close at 775.00.
- Verizon Communications Inc (VZ) added 3.33% (up 1.58 points) to finish at 48.97.
- The Coca-Cola Co (KO) rose 2.32% (up 1.79 points) to 78.60 by the close.
Decliners on the Dow
- International Business Machines (IBM) was the biggest decliner on the Dow, down 6.53% (losing 19.06 points) to 272.70.
- Salesforce Inc (CRM) fell 4.37% (down 8.45 points) to 185.00.
- Boeing Co (BA) slipped 2.60% (down 6.31 points) to 236.28.
Top and bottom performers on the S&P 500
- BorgWarner Inc (BWA) led S&P 500 gains, up 22.45% to 66.10.
- Generac Holdings Inc (GNRC) advanced 17.79% to settle at 214.73.
- Micron Technology Inc (MU) gained 9.94% to close at 410.34.
- CBRE Group Inc Class A (CBRE) was the weakest S&P 500 name, down 12.24% to 149.49.
- Leidos Holdings Inc (LDOS) declined 11.15% to end at 173.00.
- Assurant Inc (AIZ) fell 8.65% to 216.01.
Leading and lagging names on the Nasdaq Composite
- NeoConcept International Group Holdings Ltd (NCI) jumped 238.46% to 2.64.
- Decent Holding Inc (DXST) rose 80.06% to 0.31.
- Envoy Medical Inc (COCH) gained 69.20% to close at 0.66.
- Liminatus Pharma Inc (LIMN) plunged 52.60% to 0.60.
- Upstream Bio Inc (UPB) lost 47.18% to settle at 14.69.
- TG 17 Inc (OBAI) declined 44.58% to 6.65.
On the NYSE, advancing issues outnumbered decliners 1,427 to 1,302, with 90 issues unchanged. On the Nasdaq, 2,213 shares fell while 1,170 advanced and 190 finished unchanged.
Certain stocks reached noteworthy milestones during the session. Shares of BorgWarner Inc (BWA) rose to five-year highs, increasing 22.45% or 12.12 to 66.10. Generac Holdings Inc (GNRC) climbed to three-year highs, up 17.79% or 32.43 to 214.73. Caterpillar Inc (CAT) rose to all-time highs, gaining 4.40% or 32.63 to 775.00, and Verizon Communications Inc (VZ) reached three-year highs, up 3.33% or 1.58 to 48.97. On the downside, Salesforce Inc (CRM) dropped to 52-week lows, falling 4.37% or 8.45 to 185.00, and TG 17 Inc (OBAI) moved to all-time lows, down 44.58% or 5.35 to 6.65.
The CBOE Volatility Index, a gauge of implied volatility for S&P 500 options, declined 0.79% to 17.65 by the close.
Commodities and currencies
- Gold futures for April delivery rose 1.54% (up 77.66) to $5,108.66 a troy ounce.
- U.S. crude oil for March delivery advanced 1.58% (up 1.01) to $64.97 a barrel.
- The April Brent contract increased 1.35% (up 0.93) to trade at $69.73 a barrel.
In currency markets, EUR/USD was effectively unchanged, moving 0.20% to 1.19, while USD/JPY fell 0.74% to 153.24. The U.S. Dollar Index futures rose 0.15% to 96.82.
Summary
Equity markets closed lower with declines centered in Financials, Consumer Services and Technology. While several individual stocks posted strong one-day gains and reached multi-year or all-time highs, a number of large-cap and small-cap names experienced significant declines, producing mixed breadth across exchanges. Volatility measures and commodity markets showed modest moves, with gold and oil registering gains.
Key points
- Major indices finished modestly lower: the Dow fell 0.13%, S&P 500 slipped 0.01%, Nasdaq lost 0.16%.
- Sector pressure came from Financials, Consumer Services and Technology, even as select industrial and energy-related names advanced.
- Market breadth was mixed: NYSE saw more advancers than decliners, while Nasdaq had more decliners than advancers.
Risks and uncertainties
- Concentrated declines among several large-cap names may increase near-term index volatility, particularly in sectors such as Technology and Consumer Services.
- Significant single-stock moves in both directions - including multi-hundred-percent gains and steep percentage losses - could weigh on overall market sentiment and trading liquidity for smaller-cap names.
- Shifts in commodity prices and FX rates, such as moves higher in gold and oil and changes in major currency pairs, can affect sector performance unevenly across the market.
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