(RTTNews) – Stocks are seeing some strength during trading on Wednesday, partly offsetting the weakness seen over the two previous sessions. Buying interest has remained relatively subdued, however, limiting the upside for the major averages.
Currently, the major averages are turning in a mixed performance, as the Dow has slipped into negative territory. The Dow is down 20.66 points or less than a tenth of a percent at 53,771.19, while the S&P 500 is up 16.41 points or 0.2 percent at 7,744.61 and the Nasdaq is up 130.69 points or 0.5 percent at 26,576.13.
Stocks moved mostly higher early in the session following the release of relatively tame inflation data, which helped ease concerns about the outlook for interest rates.
Before the start of trading, the Labor Department released a report showing consumer prices crept up in line with economist estimates in the month of July.
The Labor Department said consumer prices inched up by 0.1 percent in July after falling by 0.4 percent in June. The uptick in consumer prices matched economist estimates.
The report also said core consumer prices, which exclude food and energy prices, rose by 0.2 percent in July after coming in unchanged in June. The increase in core prices also matched expectations.
The annual rate of growth by consumer prices edged down to 3.4 percent in July from 3.5 percent in June, while the annual rate of growth by core consumer prices slipped to 2.5 percent in July from 2.6 percent in June. The modest slowdowns also came in line with estimates.
Strength among AI-related stocks also contributed to the upward move amid a positive reaction to quarterly results and guidance from companies like CoreWeave (CRWV) and Super Micro Computer (SMCI).
However, traders seem somewhat reluctant to pick up stocks as the recent resurgence of Middle East tensions and the subsequent spike in crude oil prices lead to worries about a reacceleration in inflation.
Sector News
With Super Micro Computer leading the sector higher, computer hardware stocks are extending the rally seen over the past few sessions.
Reflecting the strength in the sector, the NYSE Arca Computer Hardware Index has surged by 3.5 percent to its best intraday level in over two months.
Semiconductor and networking stocks are also seeing substantial strength, contributing to the advance by the tech-heavy Nasdaq.
Gold stocks have also moved sharply higher amid an increase by the price of the precious metal, while housing and software stocks have shown notable moves to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Wednesday. Japan’s Nikkei 225 Index climbed by 0.8 percent, while Hong Kong’s Hang Seng Index slid by 0.8 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index is down by 0.6 percent, the U.K.’s FTSE 100 Index is down by 0.2 percent and the German DAX Index is down by 0.1 percent.
In the bond market, treasuries have pulled back near the unchanged line after seeing initial strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.678 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
