Market Update: Stocks Rise as Inflation Data Anticipated
9 months ago

The broad market exchange-traded fund SPDR S&P 500 ETF Trust ($SPY) saw a modest increase of 0.1%, while the actively traded Invesco QQQ Trust ($QQQ) advanced by 0.2% in premarket activity on Wednesday as investors look ahead to critical inflation data that may influence a Federal Reserve rate cut decision. US stock futures showed a mixed trend, with S&P 500 Index futures up 0.1%, the Dow Jones Industrial Average futures dipping 0.02%, and Nasdaq futures climbing by 0.2% ahead of regular trading hours. Recently released data from the Mortgage Bankers Association indicated that US mortgage applications surged by 5.4% last week, largely due to a 27% increase in refinancing applications as rates experienced a slight decline, while purchase applications fell by 4%. The November consumer price index is set to be published at 8:30 am ET, followed closely by the weekly EIA petroleum status report at 10:30 am ET. In the cryptocurrency space, bitcoin saw a rise of 2%, as the ProShares Bitcoin Strategy ETF ($BITO) jumped by 2.1%.

Power Play: Health Care In the health care sector, the Health Care Select Sector SPDR Fund ($XLV) declined by 0.2%, with the Vanguard Health Care Index Fund ($VHT) down 0.4%. The iShares US Healthcare ETF ($IYH) remained inactive, and the iShares Biotechnology ETF ($IBB) also saw no change. Q32 Bio ($QTTB) witnessed a significant drop, over 64% premarket, after announcing that its SIGNAL-AD phase 2a clinical trial in atopic dermatitis did not meet its primary endpoint in Part B, despite having shown promising results in Part A. Winners and Losers: Technology The Technology Select Sector SPDR Fund (XLK) experienced a 0.2% increase, and the iShares US Technology ETF ($IYW) rose by 0.6%.

Conversely, the iShares Expanded Tech Sector ETF ($IGM.US) remained flat. Among semiconductor ETFs, the SPDR S&P Semiconductor ETF ($XSD) was up 0.4%, while the iShares Semiconductor ETF ($SOXX) saw a 0.5% increase. Quantum Computing (QUBT) shares fell nearly 5% in Wednesday's premarket after the company announced it made agreements to sell about 1.5 million common shares at $5 each to institutional investors in a registered direct offering. Energy The iShares US Energy ETF ($IYE) was inactive, while the Energy Select Sector SPDR Fund ($XLE) rose by 0.4%.

Borr Drilling ($BORR) shares increased nearly 5% before the opening bell after Vaalco Energy (EGY) announced a rig contract with a Borr affiliate to drill multiple development and appraisal/exploration wells for its 2025/2026 drilling program. Financial The Financial Select Sector SPDR Fund (XLF) edged up slightly by 0.04%.

The Direxion Daily Financial Bull 3X Shares ($FAS.US) gained 0.1%, while its bearish counterpart, the Direxion Daily Financial Bear 3X Shares ($FAZ), remained unchanged. Coastal Financial ($CCB) shares rose nearly 2% pre-bell on Wednesday after announcing a public offering of 1.2 million shares priced at $71 each. Industrial The Industrial Select Sector SPDR Fund ($XLI) and the Vanguard Industrials Index Fund ($VIS) remained flat, while the iShares US Industrials ETF (IYJ) was inactive.

REV Group ($REVG) shares fell by 2% prior to the opening after reporting lower fiscal Q4 adjusted earnings and net sales, alongside a downbeat fiscal 2025 revenue forecast. Consumer The Consumer Staples Select Sector SPDR Fund ($XLP) dipped 0.1%, whereas the Vanguard Consumer Staples Fund ($VDC) remained unchanged.

The iShares US Consumer Staples ETF ($IYK) was inactive. The Consumer Discretionary Select Sector SPDR Fund ($XLY) gained 0.6%, while the VanEck Retail ETF ($RTH) remained inactive, and the SPDR S&P Retail ETF ($XRT) increased by 0.1%. General Motors ($GM) shares saw a pre-bell increase of 1.3% after the automaker announced the discontinuation of its Cruise Robotaxi program to redirect efforts towards developing self-driving technology for personal vehicles. Commodities Front-month US West Texas Intermediate crude oil prices advanced by 1.4% to $69.57 per barrel on the New York Mercantile Exchange, while natural gas prices climbed 2.8% to $3.25 per 1 million British Thermal Units.

The United States Oil Fund (USO) rose by 1.7%, alongside a 2.5% increase for the United States Natural Gas Fund (UNG). Gold futures for February increased by 0.3% to $2,727.50 an ounce on the Comex, while silver futures fell by 0.3% to $32.64 an ounce. The SPDR Gold Shares ($GLD) rose by 0.2%, although the iShares Silver Trust ($SLV) decreased by 0.5%..

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