WASHINGTON (dpa-AFX) - After ending Tuesday's choppy trading session little changed, stocks moved mostly higher over the course of the trading session on Wednesday.
The major averages gave back ground after an early advance but moved back to the upside as the day progressed, closing firmly in positive territory.
The tech-heavy Nasdaq jumped 192.87 points or 0.9 percent to a new record closing high of 20,611.34, the S&P 500 climbed 37.74 points or 0.6 percent to 6,263.26 and the Dow rose 217.54 points or 0.5 percent to 44,458.30.
The strength on Wall Street may partly have reflected optimism about a potential trade between the U.S. and the European Union.
A report from the Financial Times indicated EU negotiators are closing in on a trade deal with the U.S. that would cement higher tariffs than those granted to the U.K.
Nvidia (NVDA) helped lead the markets higher, with the AI darling jumping by 1.8 percent and briefly becoming the first company to reach a market capitalization of $4 trillion
Traders are also kept an eye on the latest developments on the trade front, with President Donald Trump posting several more letters to world leaders on Truth Social revealing plans to increase tariffs.
Trump posted letters sent to the leaders of the Philippines, Brunei, Moldova, Algeria, Iraq, Libya and Sri Lanka after posting letters sent to the leaders of 14 other leaders earlier in the week.
Meanwhile, the Federal Reserve released the minutes of its June monetary policy meeting, which revealed most participants generally agree the central bank is well positioned to wait for more clarity on the outlook for inflation and the economy before adjusting interest rates.
The Fed's 'wait and see' approach comes as participants said economic growth and the labor market remain solid and described monetary policy as moderately or modestly restrictive.
Sector News
Housing stocks turned in some of the market's best performances on the day, with the Philadelphia Housing Sector Index surging by 2.9 percent to its best closing level in over four months.
Significant strength was also visible among gold stocks, as reflected by the 1.9 percent gain posted by the NYSE Arca Gold Bugs Index.
Biotechnology and utilities stocks also saw notable strength, while oil service stocks gave back ground after Tuesday's surge, dragging the Philadelphia Oil Service Index down by 1.1 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. Japan's Nikkei 225 Index rose by 0.3 percent, while China's Shanghai Composite Index edged down by 0.1 percent and Hong Kong's Hang Seng Index slumped by 1.1 percent.
Meanwhile, the major European markets all moved to the upside on the day. While the U.K.'s FTSE 100 Index crept up by 0.2 percent, the German DAX Index and the French CAC 40 Index both jumped by 1.4 percent.
In the bond market, treasuries saw a notable rebound after trending lower over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 7.3 basis points to 4.342 percent.
Looking Ahead
Trading on Thursday may be impacted by reaction to the Labor Department's report on initial jobless claims in the week ended July 5th.
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