The S&P 500 ended the day with a modest gain on Wednesday, oscillating between gains and losses as market participants awaited key economic figures following a strong start to the week. That early momentum was fueled by encouraging inflation data and a temporary halt in the tariff standoff between the U.S. and China.
Market participants remained attentive to further developments on global trade while President Donald Trump continued his tour of the Gulf region, during which he secured $600 billion in investment commitments from Saudi Arabia. U.S. technology shares saw an uptick after Tuesday’s announcement of artificial intelligence cooperation deals between American firms and Middle Eastern partners.
“There’s a lingering ambiguity about the direction world leaders, including President Trump, will take on trade policy,” commented Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. He pointed out that while some tariff measures are currently suspended, no permanent agreements have been concluded.
“The latest statements have been favorable, which triggered a strong rally, but the uncertainty hasn’t been fully resolved,” Ghriskey added.
U.S. equities had surged on Monday and extended gains into Tuesday after Washington and Beijing agreed to a 90-day suspension in their ongoing tariff conflict. Market sentiment also improved after Tuesday’s release of data showing a moderate rebound in U.S. consumer prices during April.
Additional support for equities came from earlier moves, such as the April 9 announcement of a 90-day tariff suspension on countries excluding China, and the signing of a limited trade agreement between the U.S. and the U.K. last week.
Federal Reserve Vice Chair Philip Jefferson remarked on Wednesday that while the latest inflation figures indicate some movement toward the central bank’s 2% inflation target, the economic outlook remains clouded. Meanwhile, Chicago Fed President Austan Goolsbee noted that the inflation numbers may not yet reflect the consequences of rising import tariffs.
Based on preliminary figures, the S&P 500 (.SPX) rose by 5.56 points, or 0.09%, closing at 5,892.11. The Nasdaq Composite (.IXIC) advanced 132.91 points, or 0.70%, to 19,142.99. In contrast, the Dow Jones Industrial Average (.DJI) declined by 95.43 points, or 0.23%, to finish at 42,045.00.
Investors are now awaiting Thursday’s speech by Federal Reserve Chair Jerome Powell, which is expected to offer important insights into the Fed’s next steps regarding monetary easing. With little economic data released on Wednesday, investors largely stayed the course ahead of Thursday morning’s updates on the Producer Price Index (PPI) and retail sales.
“Everyone’s trying to determine whether trade tensions are trickling into the broader economy,” said Andrew Graham, managing partner and founder of Jackson Square Capital. However, given the current tariff moratoriums, he expressed less concern over the upcoming April indicators.
“We’re in a phase where good news drives gains, but bad news is being shrugged off,” he explained.
Large-cap and growth-oriented stocks performed well, with Nvidia (NVDA.O) delivering one of the largest positive impacts on the index. Shares of chipmaker Advanced Micro Devices (AMD.O) also rose following the announcement of a $6 billion share repurchase program.
Shares in Boeing (BA.N) climbed as well after Qatar Airways signed a deal to purchase aircraft from the American manufacturer during Trump’s stop in Doha.
Conversely, American Eagle Outfitters (AEO.N) saw its shares fall after the fashion retailer withdrew its annual guidance, attributing the move to continued economic uncertainty tied to tariffs.
