Market Overview

S&P 500 hovers near record high, reopening stocks add to gains

U.S. stocks were little changed Wednesday, with the S&P 500 hovering near its record high as investors awaited details from the Federal Reserve’s last policy meeting. The Dow Jones Industrial Average dipped 20 points. The S&P 500 gained 0.1% and the tech-heavy Nasdaq Composite edged 0.1% lower. Shares of reopening plays airlines and cruise lines led the gains, continuing their recent run. Carnival climbed 3.6%, while Royal Caribbean and Norwegian Cruise Line gained more than 2% each. Shares of Southwest American Airlines and United both rose over 1%.

Bond yields continued to retreat from recent highs. The 10-year Treasury yield dipped to 1.65%, its lowest level since March 26. Rising yields had spooked investors recently, sparking a rotation out of growth and into value-oriented areas of the market. JPMorgan Chase CEO Jamie Dimon was optimistic about the U.S. economic comeback from the pandemic in his widely read annual letter released on Wednesday.

The Federal Open Market Committee will publish the minutes from its March meeting, where the central bank opted to leave interest rates unchanged, on Wednesday. The minutes could offer investors a clue as to when the Fed might hike interest rates. The major averages pulled back from record highs to close in negative territory during regular trading on Tuesday. The Dow slid 97 points, or 0.3%, breaking a two-day winning streak. The S&P hit a record high, but retreated during afternoon trading and ultimately closed 0.1% lower for its first negative session in four. The Nasdaq Composite declined 0.05%, also snapping a three-day winning streak.

S&P 500 hovers near record high, reopening stocks add to gains, CNBC, Apr 7

Article Rating