Wall Street Inches Higher After 3-Day Dip

US labor market

U.S. stocks  showed modest gains on Wednesday after a three-day pause. The S&P 500 rose by 0.2% midday, aiming for its first increase since hitting a record high last Thursday, with movements remaining subdued since then.

The Dow Jones Industrial Average climbed 228 points or 0.6% by 11:30 a.m. Eastern time, while the Nasdaq composite dipped by 0.1%.

Trump Media & Technology Group’s shares continued their volatile run, surging another 15.5%. The company, known for the struggling Truth Social platform, has seen its stock rise significantly, driven by supporters of former President Donald Trump.

Merck gained 3.8% after receiving approval from federal regulators for its treatment for adults with pulmonary arterial hypertension, a rare lung disease.

Cintas, a provider of work uniforms and office supplies, also contributed to the S&P 500’s rise, jumping 9.7% after reporting stronger-than-expected quarterly profits.

Robinhood Markets rose 2.8% after introducing its first credit card, available to its subscription-paying Gold members, among other new products.

On the downside, Nvidia faced its second consecutive loss after a 91% surge for the year. It fell 3.4%, potentially due to investors locking in profits ahead of the quarter-end. Nvidia has been a major beneficiary of the Wall Street frenzy surrounding artificial intelligence.

GameStop also declined despite posting a profit for the latest quarter, disappointing analysts who expected a loss. It dropped 15.4%. GameStop, a pioneer meme stock, has often seen its price influenced more by sentiment than fundamentals.

In the bond market, Treasury yields edged lower on a quiet day for economic reports. The 10-year Treasury yield slipped to 4.20% from 4.23% late Tuesday.

The focus for the bond market this week will be Friday’s release of the latest monthly update on U.S. consumer spending, including the Federal Reserve’s preferred inflation measure as it sets interest rates.

Both the U.S. bond and stock markets will be closed on Good Friday, potentially leading to volatile trading on Thursday, the last day of the month and the first quarter.

The S&P 500 is heading for a fifth consecutive winning month, rising sharply since late October. Despite high interest rates aimed at curbing inflation, the U.S. economy has shown resilience. However, critics argue that a wider range of companies will need strong profit growth to justify their high stock prices.

International stock markets showed mixed performance, with Chinese stocks among the weakest performers, despite the central bank’s reassurance about the property sector’s recovery. Stocks in Hong Kong fell by 1.4% and in Shanghai by 1.3%.

Featured Image: Freepik @ wirestock

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About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.