U.S. stocks traded higher by midday Wednesday, with semiconductor equipment names and small caps leading the tape, as investors held their fire ahead of Kevin Warsh‘s first interest-rate decision as Federal Reserve chair, due at 2 p.m. ET.
The Fed is all but certain to hold the funds rate at 3.50%-3.75%, putting the spotlight on the updated “dot plot” for any hawkish tilt from the committee — and on how Warsh frames inflation and the path for rates.
Speaking at the G7 summit in Evian, France, President Donald Trump cautioned that the proposed agreement to end the Middle East conflict is “not final” and that the U.S. could resume its military operation in Iran.
The S&P 500 added 0.1% to 7,515, while the Dow Jones Industrial Average rose 0.3% to 52,171, building on Tuesday’s record close.
The Nasdaq 100 gained 0.4% to 30,077, with strength in chips offsetting weakness in megacap communications names. The small-cap Russell 2000 led the major benchmarks, jumping 1.2% to 2,975, bringing it to a record high.
In commodities, West Texas Intermediate crude climbed 1.0% to around $76.79 a barrel, while Brent rose 0.8% to $79.60.
Gold firmed, with spot bullion near $4,365 an ounce, up about 0.8%.
Wednesday’s Performance In Major US Indices
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,515.44 | +0.1% |
| Dow Jones | 52,170.95 | +0.3% |
| Nasdaq 100 | 30,077.35 | +0.4% |
| Russell 2000 | 2,975.00 | +1.2% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) edged up 0.1%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) rose 0.3%.
- The Invesco QQQ Trust (NASDAQ:QQQ) gained 0.4%.
- The iShares Russell 2000 ETF (NYSE:IWM) rallied 1.2%.
Chips And Cyclicals Lead As Exchange Operators Get Hit
The Technology Select Sector SPDR Fund (NYSE:XLK) led the S&P 500 sectors with a 1.4% gain, powered by a rally across chip names, while the Industrials Select Sector SPDR Fund (NYSE:XLI) added 1.3% in a session that favored cyclicals.
The VanEck Semiconductor ETF (NASDAQ:SMH) and the iShares Semiconductor ETF (NASDAQ:SOXX) both climbed as the wafer-fab-equipment complex extended its run on bullish analyst commentary. Applied Materials Inc. (NASDAQ:AMAT) surged 7%, after Citi raised its price target to $710 from $550 and reiterated a Buy, lifting its wafer-fab-equipment market forecast on durable, AI-driven demand.
At the other end, communications was the weakest group, with the sector ETF down 1.8% as megacap internet names lagged. Consumer staples and real estate also trailed, while the Energy Select Sector SPDR Fund (NYSE:XLE) slipped 0.7% even as crude firmed.
Fermi Inc. (NASDAQ:FRMI) topped the large-cap leaderboard, surging 13.3% after reports that SpaceX (NASDAQ:SPCX) rival OpenAI is evaluating capacity at the company’s Project Matador AI power campus in Amarillo, Texas, with JMP Citizens flagging the potential for a major commercial agreement.
Robinhood Markets Inc. (NASDAQ:HOOD) jumped 12.2% after Deutsche Bank raised its price target to $105 from $98, citing record June trading volumes and a roughly 10% workforce cut.
On the downside, exchange operators were hammered after analysts flagged that Kalshi’s approval to offer Bitcoin (CRYPTO: BTC) perpetual futures could be a competitive threat to incumbent venues.
Cboe Global Markets Inc. (BATS:CBOE) dropped 5.8%, while CME Group Inc. (NASDAQ:CME) fell 4.4% and Nasdaq Inc. (NASDAQ:NDAQ) lost 4.0%.
Auto retailers slumped after CarMax Inc. (NYSE:KMX) fell 7.0% despite a quarterly earnings beat. Adjusted EPS came in at $1.31, topping the $0.94 consensus, but profit slipped from $1.38 a year earlier even as revenue rose 6.2% to $8.0 billion.
The print dragged peer Carvana Co. (NYSE:CVNA) down 7.6%.
Wednesday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Fermi Inc. | +13.3% |
| Robinhood Markets Inc. | +12.2% |
| Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) | +11.6% |
| Sarepta Therapeutics Inc. (NASDAQ:SRPT) | +9.6% |
| Entegris Inc. (NASDAQ:ENTG) | +8.0% |
Wednesday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| Carvana Co. | -7.6% |
| CarMax Inc. | -7.0% |
| Cboe Global Markets Inc. | -5.8% |
| CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) | -4.6% |
| CME Group Inc. | -4.4% |
Image: Shutterstock
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