Risk sentiment took a sharp hit on Wednesday as investors fled stocks for cash amid ongoing debt negotiations between the White House and the Republican Party. speaker Kevin McCarthy said the parties were still a long way off apart on some things.
Markets are eagerly awaiting the May FOMC meeting minutes, due at 2pm ET, for further guidance on forthcoming Fed action. Investors will also pay attention Nvidia Corp. NVDA‘s earnings report, which will be released after the market close.
Notes from Wednesday’s trading:
The S&P 500 was down 0.9% at midday on Wednesday, matching the daily performance of the Dow Jones, while the tech-heavy Nasdaq 100 was down 1.1%. The Russell 2000 fell 1.2%.
| index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq 100 | -1.1% | 13,546.18 | |
| S&P 500 index | -0.94% | 4,106.57 | |
| Dow Industrials | -0.86% | 32,772.54 |
Analyst Color:
The market could be waiting for that one spark to get it moving as there is a tremendous amount of cash on the playing field, the fund manager said Louis Navellier.
The spark that ignites sideline cash flow into the market could be any positive news from the tech sector, such as: Apple, Inc.s AAPL Announcing a new iPhone in September, he said.
With 2024 being a presidential election year, not wanting to get involved in the economic debate, the Federal Reserve could start cutting interest rates either later this year or in early 2024, the fund manager said. This could also give the market the boost it needs, he added.
“It’s important to recognize that there will be wave after wave of positive news on inflation, interest rates and economic growth that will lure investors back into the stock market,” Navellier said.
Trading in the top US stock ETFs on Wednesday: In midday trading on Wednesday, the SPDR S&P 500 ETF Trust SPY fell 1% to $410 SPDR Dow Jones…
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