In midday trading on Wednesday, U.S. equity indexes experienced a notable rise, primarily driven by gains in the financial and industrial sectors. The Nasdaq Composite rose 0.6%, reaching a value of 18,254.1, while the S&P 500 also increased by 0.6%, advancing to 5,783.2. The Dow Jones Industrial Average saw a stronger climb, up 0.9% to 42,449.5.
However, the communication services sector struggled, marking the steepest decline intraday. In the commodities market, West Texas Intermediate crude oil saw a decline of 0.4%, settling at $73.23 a barrel. This price movement came amid warnings from Israeli Prime Minister Benjamin Netanyahu, who alerted Lebanese citizens about the risks of entering a prolonged conflict as tensions escalate with Hezbollah, as reported by CNN. The CBOE Volatility Index, often referred to as the fear gauge for investors, reflected a decrease of 2.7%, landing at 20.85, indicating reduced market volatility. On the economic front, wholesale inventories experienced a modest uptick of 0.1% in August, which was a revision from an earlier report that indicated a 0.2% gain.
This increase follows the 0.2% rise observed in July. Analysts conducting a survey for Bloomberg had anticipated that August inventories would remain unchanged from preliminary estimates. Mortgage applications indicated a significant drop, down by 5.1% for the week ending October 4, as the robust employment report from September pushed mortgage rates to peak levels unseen since August.
This decline in applications follows a 1.3% decrease noted in the overall activity for the week concluding September 27. In the realm of U.S. Treasury yields, most rates showed an uptick intraday, with the 10-year yield rising by 1.6 basis points to reach 4.05%, while the two-year rate was up by 2.4 basis points, hitting 4%. Turning to corporate news, Citigroup made a significant upgrade for Norwegian Cruise Line, moving its rating to 'buy' from 'neutral' while also increasing its price target from $20 to $30.
Following this upgrade, shares of the cruise operator surged by 10% intraday, making it the highest performer on the S&P 500. Concurrently, Citigroup adjusted the price target for rival Carnival, lifting it from $25 to $28; shares of Carnival experienced a 7% rise, marking it as the second-largest gainer on the index. In contrast, Boeing faced setbacks after announcing the withdrawal of its latest pay offer to striking workers due to stalled negotiations with the International Association of Machinists and Aerospace Workers.
Consequently, Boeing's shares fell by 2.6%, marking it as the worst performer on the Dow for the day. Additionally, Alphabet's Google is navigating challenges regarding a potential breakup of its search market influence, as indicated by a recent court filing from the U.S. Department of Justice. The dynamics of the market reflect a complex interplay of economic indicators and corporate developments, painting a multifaceted picture for investors..