U.S. stocks rebounded by midday Wednesday, recovering from Tuesday’s tech-led sell-off as crude oil tumbled to $70 a barrel on a holding U.S.-Iran ceasefire, sending small caps to a fresh record and the Dow Jones Industrial Average to an all-time high.
The relief came as a U.S.-Iran ceasefire held and negotiators advanced a 60-day roadmap toward a final deal, with the Strait of Hormuz open and the Treasury authorizing temporary Iranian oil sales.
• Micron Technology stock is under selling pressure. What’s driving MU stock lower?
West Texas Intermediate crude fell about 3.5% to $70.64 a barrel, sliding below $70 intraday, while Brent dropped 3.8% to $74.13 — back near pre-war levels — despite government data showing U.S. crude inventories drew down by more than 6 million barrels to their lowest since 1984.
The S&P 500 rose 0.6% to 7,409.62, while the Dow Jones Industrial Average added roughly 493 points, or 0.9%, to 52,160, a record high. The small-cap Russell 2000 jumped 1.2% to 3,012.39, a fresh record high.
The Nasdaq 100 lagged the rebound, climbing just 0.4% to 29,472 as megacap technology stayed muted amid lingering scrutiny over whether massive artificial-intelligence spending will be justified.
Traders are awaiting results from Micron Technology, Inc. (NASDAQ:MU) after the close, with chip sentiment also in focus after reports that South Korea’s SK Hynix is planning a U.S. listing of nearly $30 billion.
Gold extended its sharp retreat, falling 2.6% to about $4,003 an ounce and leaving the metal down roughly 11.5% month-to-date — on pace for its worst month since 2008.
Wednesday’s Performance In Major U.S. Indices
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,409.62 | +0.6% |
| Dow Jones | 52,160 | +0.9% |
| Nasdaq 100 | 29,472 | +0.4% |
| Russell 2000 | 3,012.39 | +1.2% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) rose 0.6%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) gained 0.9%.
- The Invesco QQQ Trust (NASDAQ:QQQ) edged up 0.4%.
- The iShares Russell 2000 ETF (NYSE:IWM) rallied 1.2%.
Homebuilders Roar, Gold Miners Sink
The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) led all S&P 500 sectors, climbing 2.4%, with the Industrials Select Sector SPDR Fund (NYSE:XLI) up 1.7% and the Consumer Staples Select Sector SPDR Fund (NYSE:XLP) and Materials Select Sector SPDR Fund (NYSE:XLB) each adding about 1.1%.
At the other end, the Energy Select Sector SPDR Fund (NYSE:XLE) slumped 2.2% as crude prices tumbled, the worst-performing sector of the session, while the Financial Select Sector SPDR Fund (NYSE:XLF) and Real Estate Select Sector SPDR Fund (NYSE:XLRE) lagged near the flatline.
The standout was housing: the iShares U.S. Home Construction ETF (BATS:ITB) surged about 6.9% as easing yields and momentum behind a federal housing bill lit a fire under the group.
Lower crude also boosted the U.S. Global Jets ETF (NYSE:JETS), up roughly 4.1%, and the iShares Biotechnology ETF (NASDAQ:IBB) added 2.3%. On the downside, the VanEck Gold Miners ETF (NYSE:GDX) tumbled about 4.1% as the precious-metals retreat deepened.
Wednesday’s Russell 1000 Top Gainers
Housing and rate-sensitive names ran alongside the homebuilder rally.
Rocket Companies, Inc. (NYSE:RKT) climbed about 13.3% after Trump pledged to keep mortgage rates low and there is momentum behind the housing bill, while Builders FirstSource, Inc. (NYSE:BLDR) rose about 11.5%.
RH (NYSE:RH) gained roughly 11.3% as the home-furnishings retailer’s upgraded full-year outlook met the rate-sensitive bid.
Wendy’s Co (NASDAQ:WEN) jumped about 26.5% on heavy, more than 40-times-average volume after naming Steve Cirulis chief financial officer and chief strategy officer effective June 23, a move that intensified takeover speculation around activist Trian Fund Management’s roughly 16% stake and fueled a squeeze in the heavily shorted shares.
| Name | % change |
|---|---|
| Wendy’s Co | +26.5% |
| Rocket Companies, Inc. | +13.3% |
| Shift4 Payments, Inc. (NYSE:FOUR) | +12.1% |
| Builders FirstSource, Inc. | +11.5% |
| RH | +11.3% |
Wednesday’s Russell 1000 Top Losers
On the downside, Rocket Lab Corp (NASDAQ:RKLB) slid about 8.2% as a broad space-sector sell-off and profit-taking followed SpaceX’s roughly 16% post-IPO plunge, with the recently added Nasdaq-100 member giving back part of its outsized run.
Flowserve Corp (NYSE:FLS) fell about 8.2% on deal fallout after Chart Industries opted for a superior Baker Hughes bid over its merger with Flowserve; Baker Hughes Co (NASDAQ:BKR) dropped about 4.7% as the acquirer and on the energy-sector swoon.
Strategy Inc (NASDAQ:MSTR) dropped about 7.4% as Bitcoin retreated toward the $60,000 level amid persistent spot-ETF outflows, weighing on the largest corporate holder of the cryptocurrency.
Commodity-linked names rounded out the laggards: AngloGold Ashanti plc (NYSE:AU) fell about 6.3% in step with gold’s slide, while Chord Energy Corporation (NASDAQ:CHRD) lost about 5.6% as crude prices sank.
| Name | % change |
|---|---|
| Rocket Lab Corporation | -8.2% |
| Flowserve Corporation | -8.2% |
| Strategy Inc | -7.4% |
| AngloGold Ashanti plc | -6.3% |
| Chord Energy Corporation | -5.6% |
Photo: Micron logo with Micron CEO Sanjay Mehrotra X profile photo in the background, courtesy Shutterstock
Recent Comments