U.S. equities drifted in a narrow band by midday Wednesday as investors refused to commit capital ahead of Nvidia Corp. (NVDA)'s after-the-bell results, while a hotter-than-forecast July inflation print revived talk of a September rate hike.
The Personal Consumption Expenditures (PCE) price index rose 0.2% month-over-month in July, matching forecasts of 0.1%, while the annual rate held at 3.7% versus expectations of 3.6%. Core PCE held at 3.3% year-over-year, still well north of the Federal Reserve's 2% target.
Second-quarter GDP growth was confirmed at an annualized 1.5%, down from 2.1% in the first quarter.
- Nasdaq 100, the weakest major benchmark, dropped 0.6% to 29,041.12 for a 168-point decline.
- S&P 500 slipped 0.1% to 7,668.85, shedding roughly 8 points.
- Dow Jones Industrial Average fell 0.2% to 53,446.13, giving back about 123 points.
- Russell 2000 fell 0.3% to 3,000.42, clinging to the 3,000 handle.
- Gold sank 1.3% to $4,599.33 an ounce as in-line core inflation and firmer yields sapped bullion demand, dragging the SPDR Gold Shares (GLD) lower.
- Bitcoin (BTC) eased 0.7% to $78,000.
The yield on the 10-year Treasury note rose 4 basis points to 4.67% as the inflation data undercut the case for easing. The 2-year yield added 4 basis points to 4.23%, while the 30-year held at 5.19%.
Traders now look to Fed Chair Kevin Warsh's Jackson Hole address on Friday for direction ahead of the Sept. 16 policy meeting, with markets increasingly unwilling to rule out a hike.
Wednesday's Performance In Major US Indices
According to market data:
- The Vanguard S&P 500 ETF (VOO) slipped 0.1%.
- The SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.3%.
- The Invesco QQQ Trust (QQQ) declined 0.6%.
- The iShares Russell 2000 ETF (IWM) eased 0.3%.
Energy Stocks Rise, Tech Holds Steady Ahead of Nvidia's Results
The Energy Select Sector SPDR Fund (XLE) led all 11 S&P 500 sectors with a 1.5% gain as crude reversed higher, extending its year-to-date advance to 42.7%. The Industrials Select Sector SPDR Fund (XLI) followed at 1.1%.
At the other end, the Consumer Discretionary Select Sector SPDR Fund (XLY) and the Health Care Select Sector SPDR Fund (XLV) each fell 1.0%.
The Technology Select Sector SPDR Fund (XLK) held a 0.2% gain despite the Nvidia-related caution in the index.
Precious-metals equities took the worst of it, as the VanEck Gold Miners ETF (GDX) tumbled 2.7% alongside bullion and AngloGold Ashanti plc (AU) dropped 4.3%.
The Invesco WilderHill Clean Energy ETF (PBW) shed 1.5%, while the SPDR S&P Insurance ETF (KIE) rose 0.5% and the VanEck Agribusiness ETF (MOO) added 0.4%.
Pipeline Operators — The Day's Cleanest Trade
DT Midstream Inc. (DTM) rose 5.1%, The Williams Companies Inc. (WMB) gained 4.6% and Kinder Morgan Inc. (KMI) added 4.1% as natural gas jumped. C.H. Robinson Worldwide Inc. (CHRW) climbed 5.3% and The J. M. Smucker Company (SJM) rose 4.0%.
Semtech Corp. (SMTC) led the Russell 1000 with an 8.1% surge after reporting record fiscal second-quarter net sales of $341.9 million late Tuesday, up 33% year-over-year, with data center revenue hitting a record $100 million on 800G and 1.6T demand. Semtech guided next-quarter revenue to roughly $410 million at the midpoint, about 15% above consensus.
TTM Technologies Inc. (TTMI) rose 6.6%, trading in sympathy with the AI-hardware complex ahead of Nvidia's print. Peers moved with it, as Arista Networks Inc. (ANET) gained 3.9% and Lumentum Holdings Inc. (LITE) added 3.8%.
Summit Therapeutics Inc. (SMMT) climbed 6.6%. The move follows a roughly 25% one-month drawdown and comes ahead of the FDA's decision on ivonescimab expected by mid-November.
Retail Delivers Session's Other Upside
Bath & Body Works Inc. (BBWI) jumped 6.4% after posting adjusted earnings of 62 cents per share against a 25-cent consensus and lifting full-year adjusted EPS guidance to $2.60-$2.80 from $2.40-$2.65, marking its first direct net sales growth since 2021 – enough to override a third-quarter forecast of 7 to 12 cents versus 26 cents expected.
The Gap Inc. (GAP) rallied 5.7%, riding the read-across into its own second-quarter report due Thursday after the close. DICK'S Sporting Goods Inc. (DKS) tacked on 3.2%.
The day's most brutal reaction? Dycom Industries Inc. (DY). The provider of specialty contracting services' stock price dipped 11.3% despite record fiscal second-quarter contract revenue of about $2 billion, up 45.6%, adjusted EPS of $5.29, backlog of $12.24 billion, up 53.2%, and a raised full-year outlook.
Zoom Communications Inc. (ZM) tumbled 7.8% even after beating with adjusted EPS of $1.55 against $1.48 expected and raising full-year fiscal 2027 revenue, EPS, and free cash flow guidance. Total revenue growth of just 4.9% left investors underwhelmed on the pace of AI monetization.
Moderna Inc. (MRNA) dropped 7.4% as profit-taking extended into a fourth session following last week's 177% single-day surge on late-stage melanoma data for its personalized cancer vaccine. Caris Life Sciences Inc. (CAI) fell 5.9% with no confirmed catalyst on the tape, last reporting on Aug. 5.
Elsewhere, Intuit Inc. (INTU) slid 4.5% after guiding fiscal 2027 revenue to $23.28 billion-$23.51 billion, implying 9% to 10% growth, with Mailchimp seen flat to down 1%.
Boston Scientific Corp. (BSX) lost 4.6%, and Eli Lilly and Co. (LLY) fell 3.5%, weighing on healthcare.
Crypto-linked equities also came under pressure, with Bitcoin down 0.8% near $78,000. Coinbase Global Inc. (COIN) fell 3.8%, Strategy Inc. (MSTR) lost 3.7%, and IREN Ltd. (IREN) dropped 5.5%.
Wednesday's Russell 1000 Top Gainers
Wednesday's Russell 1000 Top Losers
