Tech Rally Boosts S&P 500 to Record High as Microsoft, Amazon, and Apple Lead; Dow Jumps 400 Points
U.S. stocks surged for the second consecutive day on Wednesday, with the S&P 500 hitting a record high, driven by a strong rally in technology stocks. Investors appeared unfazed by ongoing geopolitical risks.
The S&P 500 rose by 0.7%, while the Nasdaq Composite climbed by 0.6%. The Dow Jones Industrial Average also saw significant gains, surging 400 points, or 0.95%.
Tech giants Microsoft, Amazon, and Apple each advanced by around 1%, leading the tech-driven rally. Super Micro Computer soared by 7% on a strong performance. These gains helped major indexes recover from earlier losses in October and pushed them back into positive territory for the month.
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Boeing Shares Drop Amid Strike Troubles
On the downside, Boeing saw its shares drop nearly 3% as the aerospace company retracted a pay raise offer for 33,000 machinists who have been on strike since mid-September. With talks stalling, concerns are growing over the financial toll the strike could have on Boeing, potentially costing the company over $1 billion per month, according to S&P Global Ratings.
Alphabet and Blackstone Shares Decline
Shares of Alphabet slipped 1.7% following reports that the U.S. Department of Justice was nearing a move to break up Google over antitrust concerns. Blackstone also fell nearly 1% after Piper Sandler downgraded the stock, noting that the firm’s recent gains were likely already factored into its price.
Focus Turns to Fed Minutes and Economic Data
Investors’ attention was on the upcoming release of the Federal Reserve’s September meeting minutes, which will provide further insight into the central bank’s decision to cut interest rates for the first time in over four years. The market is also awaiting crucial inflation data, which is expected to influence the Fed’s policy moving forward.
Chinese Stocks Slide
U.S.-listed Chinese stocks experienced another day of losses, extending the downturn from the previous session. Alibaba fell by 3.2%, JD.com dropped 4.6%, and Nio slid 2.4%. Concerns over China’s economic stability were exacerbated by a lack of fresh stimulus measures from its top economic planners. The Shenzhen Index plunged 8.7%, marking its worst day since 1997, while the Shanghai Composite fell by 6.6%.
Oil Prices Fall Again
Despite concerns over global supply disruptions from the ongoing tensions in the Middle East, both Brent and WTI crude oil prices dropped further on Wednesday. U.S. crude oil inventories surged by 10.9 million barrels, keeping oil prices in check despite Hurricane Milton approaching Tampa, Florida, where some oil facilities were shuttered.
At the time of writing, Brent oil was trading at $76.28 per barrel, down 1.2%, while WTI crude dropped by 1.1% to $72.80 per barrel.
This mixed market performance reflects the challenges investors face as they weigh strong macroeconomic signals against sector-specific pressures.
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