Thursday big stock stories: What's likely to move the market in the next trading session
Market Recap: Stocks Stage Impressive Comeback #
The major stock averages made a stunning comeback from the day’s lows in a volatile trading session.
Nvidia Leads Tech Rally #
Nvidia shares swung significantly from session lows to highs, ending the day up 8%. The stock jumped as the CEO spoke at a conference, expressing optimism about demand for the company’s key Blackwell chip and dismissing concerns about slowdowns or production problems. Despite being 17% below its June high, Nvidia is up 136% year-to-date.
The S&P tech sector rose 3.25% on Wednesday, now sitting 8% below its 52-week high.
Market Turnaround Explained #
The S&P 500 saw a roughly 154-point turnaround from morning lows to late session highs. The Dow swung about 910 points, while the Nasdaq Composite experienced a roughly 633-point jump.
The turnaround was attributed to rising bond yields. Recent market behavior has seen stocks fall as yields rise. However, the quick retreat of bond yields in recent months had made investors nervous about economic fears. Wednesday’s rise in yields provided a boost of confidence to stock investors.
Sector Performance #
Rate-sensitive sectors have performed well in the last three months:
- Real estate: up 18%
- Utilities: up about 10%
- Financials: up 8.6%
Energy and communication services were the weakest S&P sectors in the last three months, down 6% and 5% respectively.
Insurance Sector #
Insurance stocks saw a drop, with notable declines for several major companies. Some attribute this to investor concerns about potential policy changes that could impact the industry.
Despite the day’s drop, the sector has shown strength over the past three months, with several companies posting double-digit gains.
Commodities and Other Stocks #
- Cocoa prices surged over 6% on Wednesday and are up 12% in a week, impacting chocolate manufacturers.
- Boeing stock continues to face pressure, down 7% in September and 40% from its December high.
- Solar stocks saw significant gains, with several companies posting double-digit increases.
Looking Ahead #
Investors will be watching for Kroger’s earnings report before the next trading session begins.