Source: Sharecast
The Dow gained 1% to 44,922.27, its highest close since 23 July, while the S&P 500 and Nasdaq posted more modest gains, following the record peaks set the previous session. Nevertheless, they were still able to hit new closing highs of 6,466.58 (+0.3%) and 21,713.14 (+0.1%), respectively.
Markets have risen strongly over the past two sessions after data on Tuesday showed a smaller-than-expected rise in US inflation. The annual consumer price inflation rate remained at 2.7% in July, below estimates of 2.8%. The report showed that, while underlying pressures remained, particularly in shelter and services, the broader inflation picture may be stabilising.
July's CPI reading comes ahead of the Federal Open Market Committee's September policy meeting, with investors betting that it increases the likelihood that the central bank will cut interest rates at said meeting.
“The market is getting excited about interest rate cuts from the Fed, and the US Treasury Secretary has poured a large can of fuel on the fire,” says Danni Hewson, head of financial analysis at AJ Bell.
In an interview with Bloomberg on Wednesday, Treasury Secretary Scott Bessent said he predicts a 50 basis-point cut from the Fed at its next meeting in September. He also said he thinks interest rates should be 150-175bp lower than they are currently.
"Donald Trump will also be choosing the next Fed Chair to take office from next May after Jay Powell’s term expires, and those who want a shot at the title, both inside and outside the Fed, will need to sing for their supper. And the song, in case there is any doubt, is a call for lower interest rates," Hewson said.
On Wednesday's macro slate, US mortgage applications were up by double digits in the week ended 8 August, according to the Mortgage Bankers Association of America. Mortgage applications surged 10.9% week-on-week, building on the prior week's unrevised 3.1% increase and marking the sharpest increase in mortgage demand in the last two months. Applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, shot up 23% week-on-week, while applications to purchase a home rose just 1.4%.
In other news, the International Energy Agency on Wednesday raised its oil supply outlook for 2025 by nearly 400,000 barrels of oil per day after recent announcements by eight OPEC+ members that they would up production from September. Global oil supply growth has been revised to 2.5m b/d this year, from 2.1m b/d previously, after the members of the oil cartel agreed on 3 August to raised production by another 547,000 b/d next month, fully unwinding the 2.2m b/d cuts put in place since April.
Market movers
Digital asset platform Bullish soared in its stock market debut in New York on Wednesday, with the stock settling at $68, far above the IPO price of $37 and valuing the company at nearly $10bn. Shares finished miles ahead of the indicated price range, which had already been raised twice by the firm over the past week.
The company is most well known for its CoinDesk brand, which operates as a media and events provider for the crypto industry, as well as running benchmarks and indices that track digital assets. It also runs Bullish Exchange, a regulated and institutionally focused digital assets spot and derivatives exchange.
“The last leg of growth in crypto, the last 10 years, was basically all retail," chief executive Tom Farley said in an interview with CNBC, adding: "The institutional wave has begun."
No major corporate earnings were released during the session, though grocers Kroger and Albertsons were under pressure after retail behemoth Amazon unveiled an expansion of its same-day delivery services for fresh foods.
Dow Jones - Risers
Intel Corp. (INTC) $22.22 6.50%
Dow Chemical Co. (DOW) $22.92 5.57%
Unitedhealth Group Inc. (UNH) $271.81 3.91%
Nike Inc. (NKE) $77.20 3.07%
Merck & Co. Inc. (MRK) $82.71 3.00%
Home Depot Inc. (HD) $407.18 2.82%
Walt Disney Co. (DIS) $116.64 2.57%
Salesforce.Com Inc. (CRM) $237.03 2.32%
International Business Machines Corporation (CDI) (IBM) $240.07 2.26%
Apple Inc. (AAPL) $233.33 2.25%
Dow Jones - Fallers
Walmart Inc. (WMT) $100.99 -2.54%
Microsoft Corp. (MSFT) $520.58 -1.06%
JP Morgan Chase & Co. (JPM) $290.53 -0.79%
Cisco Systems Inc. (CSCO) $70.40 -0.64%
Coca-Cola Co. (KO) $70.46 -0.35%
Dowdupont Inc. (DWDP) $0.00 0.00%
Walgreens Boots Alliance, Inc. (WBA) $11.89 0.07%
Goldman Sachs Group Inc. (GS) $744.69 0.18%
Procter & Gamble Co. (PG) $155.41 0.21%
Caterpillar Inc. (CAT) $413.70 0.24%
S&P 500 - Risers
Nektar Therapeutics (NKTR) $25.72 12.91%
DENTSPLY Sirona Inc. (XRAY) $13.84 9.63%
Kohls Corp. (KSS) $14.00 9.12%
CenturyLink Inc. (LUMN) $4.31 9.11%
American Airlines Group (AAL) $13.11 7.98%
Align Technology Inc. (ALGN) $145.82 7.68%
Expedia Group Inc. (EXPE) $209.68 7.53%
LKQ Corporation (LKQ) $31.71 7.51%
Harley-Davidson Inc. (HOG) $27.44 7.23%
VF Corp. (VFC) $13.08 7.13%
S&P 500 - Fallers
Kroger Co. (KR) $70.33 -4.38%
CME Group Inc. (CME) $273.92 -3.85%
General Electric Co. (GE) $268.86 -3.85%
Oracle Corp. (ORCL) $244.18 -3.81%
Charles Schwab Corp. (SCHW) $95.59 -3.14%
H&R Block Inc. (HRB) $49.92 -3.07%
Quanta Services Inc. (PWR) $379.96 -2.96%
Raymond James Fin Corp. (RJF) $163.84 -2.69%
Walmart Inc. (WMT) $100.99 -2.54%
Arista Networks Inc. (ANET) $138.01 -2.29%
Nasdaq 100 - Risers
DENTSPLY Sirona Inc. (XRAY) $13.84 9.63%
American Airlines Group (AAL) $13.11 7.98%
Align Technology Inc. (ALGN) $145.82 7.68%
Expedia Group Inc. (EXPE) $209.68 7.53%
Sirius XM Holdings Inc (SIRI) $22.41 6.56%
Intel Corp. (INTC) $22.22 6.50%
Incyte Corp. (INCY) $85.85 6.48%
Workday, Inc. (WDAY) $223.07 6.09%
eBay Inc. (EBAY) $100.77 5.40%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $532.71 5.25%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $4.08 -10.82%
Netflix Inc. (NFLX) $1,204.44 -1.62%
Microsoft Corp. (MSFT) $520.58 -1.06%
Gilead Sciences Inc. (GILD) $120.14 -1.04%
Alphabet Inc. Class A (GOOGL) $201.96 -1.00%
Meta Platforms Inc. (META) $780.08 -0.96%
Micron Technology Inc. (MU) $124.27 -0.85%
Alphabet Inc. Class C (GOOG) $203.03 -0.77%
Costco Wholesale Corp. (COST) $978.85 -0.73%
Cisco Systems Inc. (CSCO) $70.40 -0.64%