U.S. benchmark equity indexes experienced an upward trend during intraday trading as the market scrutinized the latest releases of corporate earnings. The S&P 500 index manifested a gain of 0.3%, reaching 5,257.5 by midday Wednesday. In comparison, both the Dow Jones Industrial Average and the Nasdaq Composite indexes saw increases of 0.2%, settling at 37,074.6 and 16,415.2, respectively.
A closer look at sector performance revealed that the energy sector led the pack with substantial gains, while the healthcare sector witnessed the most significant declines. In the realm of company-specific news, shares of Fortinet ($FTNT) demonstrated remarkable growth, increasing nearly 27%. This performance marked Fortinet as the top performer on both the S&P 500 and Nasdaq indexes after the company raised its financial outlook for 2024 following a successful second-quarter performance. Additionally, Axon Enterprise ($AXON) emerged as the second-largest gainer on the S&P 500 with a notable increase of 19%.
This rise followed Axon’s announcement of an uptick in its full-year revenue guidance after posting second-quarter results that exceeded Wall Street's expectations. On the other side of the spectrum, Super Micro Computer ($SMCI) faced a substantial decline, with shares tumbling 18% intraday, marking it as the worst performer on both the S&P 500 and Nasdaq indexes.
The downturn coincided with Super Micro's fiscal fourth-quarter earnings, which fell short of market estimates, even as its board of directors approved a 10-for-1 forward stock split. Airbnb ($ABNB) found itself as the second-worst performer on both the S&P 500 and Nasdaq, witnessing a 15% decrease.
The vacation rental giant reported second-quarter earnings that plummeted more than anticipated, attributed to a surge in operational costs. In terms of upcoming earnings releases, several noteworthy companies, including McKesson ($MCK), Monster Beverage ($MNST), and Warner Bros. Discovery ($WBD), are set to disclose their results following the closing bell on Wednesday. Turning to bonds, the U.S.
10-year yield noted a rise of 6.7 basis points, increasing to 3.95% intraday, while the two-year rate added 3.7 basis points, sitting at 4.02%. On the economic front, the Mortgage Bankers Association reported that mortgage application volume in the U.S. has surged to its highest point since January.
This rebound followed two consecutive weeks of declines, primarily driven by elevated refinance activity and a decrease in rates across various loan types. In commodities, West Texas Intermediate crude oil prices climbed 2.5%, reaching $75.17 per barrel intraday. Gold prices saw a slight increase of 0.1%, settling at $2,434.10 per troy ounce, whereas silver prices dipped 1% to $26.95 per ounce. In summary, today's market activity reflects a nuanced landscape where positive corporate earnings are juxtaposed with mixed sector performances.
As the U.S. economy navigates recovery, investors remain vigilant towards the incoming earnings reports that are poised to shape market sentiment..