The Dow Jones Industrial Average closed at 26,989.99 on Wednesday with a loss of 282.31 points or -1.04%. The S&P 500 closed at 3,190.14 for a loss of 17.04 points or -0.53%. The Nasdaq Composite closed at 10,020.35 for a gain of 66.59 points or 0.67%. The VIX Volatility Index was higher at 27.61 for a gain of 0.040 points or 0.15%.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Wednesday’s market movers” data-reactid=”13″>Wednesday’s market movers
Investors were closely watching the Federal Open Market Committee’s policy decisions and economic projections Wednesday. The Fed kept the federal funds rate unchanged at zero to 25 basis points. It also suggested no rate increases were likely to occur through 2022. The Fed will also be continuing its high levels of asset purchases to help the economy and keep credit markets stable. Its economic projections show an expected gross domestic product decrease of 6.5% and an unemployment rate of 9.3% for 2020.
The Nasdaq closed at another record high Wednesday while most other indexes ended lower. The Nasdaq reported its first close above 10,000. FAANG stocks continued to help the Nasdaq, with all but Facebook reporting a gain for the day. Apple was up 2.90%. In biotech, the Moderna (MRNA), AstraZeneca (AZN) and Johnson & Johnson (JNJ) all reported Covid-19 vaccine trials planned for this summer that would be supported with funding from the government.
Other stock spotlights included:
- Just Eat Takeaway.com (TKAYY) and Grubhub (GRUB) are in final negotiations for a deal.
- The iShares Nasdaq Biotechnology Index gained 0.32%, led by Precigen (PGEN), up 25.86%.
Economic reports affecting market trading included the following:
- The MBA Mortgage Applications Index increased 9.3% following a decrease of 3.9%. The MBA’s average 30-year mortgage rate increased to 3.38% from 3.37%.
- The Consumer Price Index decreased 0.1% in May and reported a year-over-year increase of 0.1%.
- The Core Consumer Price Index excluding food and energy decreased 0.1% in May and reported a year-over-year increase of 1.2%.
- The EIA’s Weekly Petroleum Status report showed an increase of 7.9 million barrels in crude oil inventory.
- The Federal Open Market Committee kept its federal funds rate target unchanged at zero to 25 basis points and released economic projections.
- The Treasury’s monthly budget statement for May showed a deficit of $399 billion.
In the S&P 500, technology led gains. In the Nasdaq 100, the following stocks led gains:
- Tesla (NASDAQ:TSLA) 8.65%
- IDEXX Laboratories (NASDAQ:IDXX) 6.23%
- NetEase (NASDAQ:NTES) 3.77%
- Nvidia (NASDAQ:NVDA) 3.55%
- Microsoft (NASDAQ:MSFT) 3.52%
- JD.com (NASDAQ:JD) 3.2%
- Electronic Arts (NASDAQ:EA) 3.09%
- Apple (NASDAQ:AAPL) 2.55%
- T-Mobile US (NASDAQ:TMUS) 2.52%
- Biomarin Pharmaceutical (NASDAQ:BMRN) 2.45%
- Adobe (NASDAQ:ADBE) 2.43%
- PayPal (PYPL) 1.94%
- Advanced Micro Devices (AMD) 1.9%
- Amazon (AMZN) 1.83%
- Intuit (INTU) 1.59%
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Small-cap stocks” data-reactid=”54″>Small-cap stocks
In small caps, the Russell 2000 closed at 1,467.39 for a loss of 39.66 points or -2.63%. The S&P 600 closed at 863.09 for a loss of 31.68 points or -3.54%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,069.63 for a loss of 194.90 points or -1.90%. The Dow Jones U.S. Small-Cap Value Index closed at 7,410.12 for a loss of 380.99 points or -4.89%.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Other notable indexes” data-reactid=”56″>Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,857.46 for a loss of 47.91 points or -2.51%; the S&P 100 at 1,459.78 for a loss of 1.02 points or -0.070%; the Nasdaq 100 at 10,094.26 for a gain of 127.08 points or 1.28%; the Russell 3000 at 1,858.54 for a loss of 13.13 points or -0.70%; the Russell 1000 at 1,765.20 for a loss of 10.26 points or -0.58%; the Wilshire 5000 at 32,482.22 for a loss of 224.50 points or -0.69%; and the Dow Jones U.S. Select Dividend Index at 622.43 for a loss of 14.54 points or -2.28%.
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