Stocks were set to struggle again on Wednesday as investors evaluate their holdings following a booming first half of the year led by AI plays. The S&P 500 was on track for its fourth losing day in the last five as it closes out a six-month gain of nearly 15%. Nasdaq 100 futures fell 0.1%, while S&P 500 futures inched down 0.2%. Futures tied to the Dow Jones Industrial Average dropped 100 points, or 0.2%. FedEx popped 14% after issuing adjusted earnings that surpassed estimates in the fiscal fourth quarter. Rivian Automotive soared 36% after Volkswagen Group said it would invest up to $5 billion in the electric vehicle company. Nvidia inched up 0.5% in premarket trading Wednesday after climbing 7% on Tuesday, its first positive day in four. The artificial intelligence chipmaker’s $3.1 trillion market value has come to dominate the cap-weighted S&P 500, and its 154% surge in 2024 has raised concerns that most other stocks are failing to participate in this year’s rally. Investors began to shift their attention toward fresh inflation data on Friday with the release of May’s personal consumption expenditures price index. The Federal Reserve keeps a close eye on its preferred inflation gauge, and investors are hopeful that the central bank will lower interest rates at some point later this year if price increases continue to moderate. In Tuesday’s regular trading, both the S&P 500 and the Nasdaq Composite ended three days of declines, buoyed by a bounce in Nvidia shares. The 30-stock Dow was the laggard of the three major averages, sliding nearly 300 points. “We still think it’s too early to write off the rest of the market in favor of the large-cap tech and Nvidia especially,” Bespoke Investment Group co-founder Paul Hickey said on CNBC’s “Closing Bell: Overtime” on Tuesday. “We look for the market to broaden out, but it’s not necessarily a binary choice between megacaps and smaller caps, but more bias going forward to looking at these other companies in the S&P 500.” U.S. Treasury yields were higher on Wednesday as investors considered the latest comments from Federal Reserve officials about monetary policy and awaited key economic data. At 7:03 a.m. ET, the yield on the 10-year Treasury was up by 4 basis points to 4.279%. The 2-year Treasury yield was last at 4.733% after rising by 4 basis points. Asia-Pacific markets mostly rose Wednesday as semiconductor and related stocks jumped after Nvidia rallied overnight, while higher Australia’s inflation rate climbed for a third straight month. Australia’s S&P/ASX 200 lost 0.71%, dragged by retail trade stocks, closing at 7,783. The index was the only one in negative territory throughout Asia. Japan’s Nikkei 225 gained 1.26% and ended at 39,667.07, hitting its highest level since April 9, while the broad-based Topix was up 0.56% and reached its highest since March 22. South Korea’s Kospi gained 0.64% to 2,792.05, while the small-cap Kosdaq traded close to the flatline and finished slightly up at 842.12. Hong Kong’s Hang Seng index was marginally up in its final hour of trade, while mainland China’s CSI 300 closed 0.65% higher at 3,480.26 – rebounding off a near four-month low. Crude oil futures rose Wednesday as investors wait for the latest U.S. inventory data for indications of how gasoline demand is holding up as summer. Oil prices pulled back Tuesday as the recent rally paused, but West Texas Intermediate and Brent are ahead 5.9% and 4.9% for the month as analysts expect summer fuel demand to pick up after a soft start to the season. West Texas Intermediate August contract: $81.53 per barrel, up 70 cents, or 0.87%. Year to date, U.S. oil has gained 13.8%. Brent August contract: $85.66 per barrel, up 65 cents, or 0.76%. Year to date, the global benchmark is ahead 11.2%. Gold prices were subdued on Wednesday ahead of crucial U.S. inflation data due this week, which could offer more clarity on the timing of the Federal Reserve’s first interest rate cut this year. Spot gold was flat at $2,319.95 per ounce, as of 0337 GMT. U.S. gold futures held their ground at $2,331.30. The dollar rose 0.1% against its rivals, making gold more expensive for other currency holders, while benchmark 10-year yields also edged higher.
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