US equity indexes experienced an upward trend on Wednesday, with government bond yields displaying mixed results in the wake of varying macroeconomic data. Specifically, the Nasdaq Composite rose by 0.4%, reaching 18,363.8, while the S&P 500 saw a 0.3% increase, climbing to 5,796.4. Initially, both indexes faced declines earlier in the trading session, but they managed to recover.
The Dow Jones Industrial Average also gained traction, rising by 0.5% to settle at 42,712.6, effectively clawing back from earlier losses. The energy and utilities sectors were among the top decliners, whereas the materials sector stood out as the leading gainer during intraday trading. In the realm of economic indicators, the ADP reported a 77,000-job increase in private payrolls for February.
This figure fell short of the 140,000 jobs anticipated by economists surveyed by Bloomberg. The February increase came on the heels of a revised upward figure from January, which reported a gain of 186,000 jobs. On another note, the Institute for Supply Management (ISM) reported a noteworthy uptick in its US services index, which climbed to 53.5 in February, up from 52.8 the previous month.
This surpassed expectations of a rise to 52.5, suggesting a positive outlook for the services sector. In terms of U.S. Treasury yields, the market exhibited mixed movements. The yield on the 2-year Treasury remained relatively stable at 3.96%, whereas the 10-year Treasury yield saw an increase of 4.4 basis points, reaching 4.25%. In corporate developments, CrowdStrike ($CRWD) announced its fiscal Q1 and full-year earnings guidance late Tuesday, revealing figures that fell short of market expectations.
Specifically, the outlook for operating margins was described as "below expectations," while the commentary on free cash flow margin indicated potential pressures, as noted by UBS Securities in a Wednesday update. As a direct consequence of this announcement, CrowdStrike's shares plummeted by 8.8% during intraday trading, marking it as the worst performer in both the S&P 500 and the Nasdaq indices. In other market activities, West Texas Intermediate crude oil futures declined by 3.7%, settling at $65.74 per barrel, recovering slightly from session lows. In commodities, gold futures increased by 0.3% to reach $2,930.00, while silver futures experienced a 2% rise, climbing to $33.04..