Tech rally boosts S&P 500 to record high as Microsoft, Amazon, and Apple lead; Dow jumps 400 points

US stocks climbed for the second straight day on Wednesday, with the S&P 500 hitting a new record high as technology stocks led the charge and investors brushed aside geopolitical concerns.

The S&P 500 and Nasdaq Composite gained 0.7% and 0.6%, respectively, while the Dow Jones Industrial Average surged 400 points, or 0.95%.

Tech giants like Microsoft, Amazon, and Apple each rose around 1%, with Super Micro Computer jumping 7%.

The day’s strong performance helped recover losses from earlier in the month, pushing the major indexes back into positive territory for October.

Boeing shares drop amid strike troubles

Boeing shares fell nearly 3% after the aerospace giant withdrew a pay raise offer for 33,000 machinists currently on strike since mid-September.

Talks have stalled again, raising concerns about further financial hits to the company.

According to S&P Global Ratings, the ongoing strike could cost Boeing over $1 billion a month.

Meanwhile, Alphabet shares dropped 1.7% after reports surfaced that the US Department of Justice was moving closer to breaking up Google over antitrust issues.

Blackstone also saw a decline of nearly 1% after Piper Sandler downgraded the stock, citing that much of its recent gains had already been priced in by investors.

Focus turns to Fed minutes and economic data

Market attention remained fixed on the release of the Federal Reserve’s September meeting minutes.

During that meeting, the Fed cut interest rates for the first time in over four years by 50 basis points.

Investors are keen to analyze the minutes, particularly in light of last week’s robust labor market data, to assess the likelihood of another rate hike.

Upcoming inflation data is also expected to play a critical role in shaping market sentiment and Fed policy moving forward.

Chinese stocks slide

US-listed Chinese stocks, including Alibaba, JD.com, and Nio, continued their downward trend on Wednesday, extending losses from the previous session. Alibaba fell 3.2%, JD.com dropped 4.6%, and Nio slid 2.4%.

The sell-off followed renewed concerns over China’s economic stability, exacerbated by a lack of new stimulus measures from the country’s top economic planners.

The Shenzhen Index plunged 8.7%, marking its worst day since 1997, while the Shanghai Composite fell 6.6%.

Oil prices fall again

Both Brent and West Texas Intermediate (WTI) crude oil prices extended their losses from Tuesday, as a strong supply outlook outweighed concerns about ongoing tensions in the Middle East.

The American Petroleum Institute reported that US crude oil inventories had surged by 10.9 million barrels in the week ending last Friday, fueling the decline in prices.

Despite the geopolitical tensions threatening global oil supply, the rising US stockpiles and available production capacity within OPEC and its allies have kept prices in check.

As Hurricane Milton approached Tampa, Florida, oil facilities in the region were shuttered in anticipation.

GasBuddy data revealed that over 17% of petrol pumps in Florida had run out of fuel as residents evacuated the area.

At the time of writing, Brent oil was trading at $76.28 per barrel, down 1.2%, while WTI crude was 1.1% lower at $72.80 per barrel.

This mixed bag of market events underscores the delicate balance investors must navigate, with strong macroeconomic signals being offset by sector-specific challenges.

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