In the midst of ongoing economic evaluations, US benchmark equity indexes have experienced an upward trajectory as traders and investors keenly await the latest monetary policy decision from the Federal Reserve, along with significant financial results from Meta Platforms, Inc. ($META). As the trading day progressed on Wednesday, the Nasdaq Composite index climbed impressively, recording an increase of 2.2%, reaching 17,525.4 points by midday.
The S&P 500 also exhibited positive movement, rising 1.4% to a level of 5,512.4 points. Meanwhile, the Dow Jones Industrial Average posted a modest gain of 0.5%, settling at 40,956.3. Notably, all sectors of the market registered gains, with technology leading the way with a noteworthy jump of 3.1%.
Focus turns toward the upcoming announcement from the Federal Open Market Committee regarding its benchmark lending rate, which is set to be revealed at 2 pm ET. Market analysts and participants are generally anticipating that policymakers will opt to maintain interest rates at their current levels, according to insights derived from the CME FedWatch tool.
Market strategists opine that "Any indication of additional confidence from the Fed regarding inflation's movement toward its target, or an upward adjustment in their assessment of inflation progress, will presumably elevate the likelihood of a monetary policy adjustment in September. This speculation comes despite a noticeable uptick in economic activity during the second quarter, a robust labor market, and stubbornly high inflation levels, which have only shown improvement over the last two months," as stated in a note from Stifel to its clients.
On the bond market front, the US 10-year Treasury yield recorded a decrease of 2.5 basis points, settling at 4.12% intraday, while the two-year rate saw a slight uptick, adding one basis point to reach 4.36%. In noteworthy corporate news, Meta Platforms, Inc. is positioned to disclose its latest quarterly financial results following Wednesday's market closing.
The tech giant is joined by Qualcomm, Inc. ($QCOM) in sharing its financial health with investors. Moreover, Nvidia Corporation ($NVDA) saw its shares soar by an impressive 11%, emerging as the top gainer on the Nasdaq and a notable performer within the S&P 500. On Monday, Nvidia announced the introduction of innovative generative artificial intelligence models and NIM microservices aimed at enhancing the Universal Scene Description (OpenUSD) framework, broadening its application across robotics, industrial design, and engineering sectors.
Meanwhile, Boeing Company ($BA) appointed a new chief executive on Wednesday, amid challenges as the aircraft manufacturer's loss in the second quarter exceeded expectations. Notably, Boeing shares increased by 4.6% intraday, making them the best performers on the Dow index. Conversely, Marriott International, Inc.
($MAR) saw its shares decline by 5.8%, ranking among the most substantial losses on the S&P 500. The hotel conglomerate revised its guidance downward for full-year earnings and global revenue per available room following second-quarter sales that fell short of market projections. In the commodities sector, West Texas Intermediate crude oil prices experienced a significant surge of 4.1%, now trading at $77.77 per barrel intraday.
On the economic front, Automatic Data Processing, Inc. ($ADP) reported a deceleration in employment growth within the US private sector for the month of July. Furthermore, the data indicated that annual pay increases for job holders reached the slowest growth rate recorded in three years. Looking ahead, the Bureau of Labor Statistics is anticipated to reveal on Friday that the US economy added approximately 175,000 nonfarm jobs in this month, which would indicate a decrease compared to the 206,000 gained in June.
In precious metals trading, gold prices rose by 0.9%, reaching $2,473.20 per troy ounce, while silver prices increased by 1.3% to $28.9 per ounce..