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Stock market participants experienced a day of mixed news and market movements on Wednesday, as the major indexes opened higher after two consecutive days of losses. The Dow Jones Industrial Average was up about 0.5%, while the S&P 500 and Nasdaq Composite added 0.7% and 1%, respectively. This positive start to the day brought a sense of relief to investors who were concerned about the recent market downturn.
One of the key developments of the day was the performance of individual stocks before the market opened. Foot Locker shares tumbled nearly 10% after the sneaker retailer posted a holiday-quarter loss and provided weak guidance for the current year. Conversely, cybersecurity company CrowdStrike saw its shares jump more than 23% after its fourth-quarter earnings beat estimates. Palantir Technologies also rallied 7.5% on news of a contract from the U.S. Army worth $178.4 million.
Federal Reserve Chair Jerome Powell also made headlines with his remarks on interest rates. In prepared remarks for his appearance on Capitol Hill, Powell reiterated that the Fed was not yet ready to start cutting rates. He emphasized the need to carefully assess incoming data and the evolving outlook before making any adjustments to the policy rate. Powell’s comments provided insight into the Fed’s current stance on monetary policy.
On the economic front, private payrolls grew less than expected in February, according to data from ADP. The private sector added 140,000 jobs, slightly below economists’ forecasts. This slower job growth raised concerns about the pace of economic recovery, especially in light of rising inflation and other macroeconomic factors.
UBS also made an interesting observation about similarities between today’s stock market and the 1990s bull market. The firm noted some parallels in the market rally, particularly in the tech sector. While there are notable differences, UBS highlighted the need for certain economic factors to improve for the bull run to sustain.
In international news, Australia’s GDP grew 0.2% in the final quarter of 2023, driven by government expenditure and private business investment. South Korea’s inflation rate rose to 3.1% in February, exceeding expectations. Additionally, Australian companies showed interest in investing over $3 billion in Malaysia, highlighting cross-border investment opportunities.
As the trading day came to a close, Nordstrom shares slid nearly 10% in extended trading despite beating earnings and revenue expectations. CrowdStrike and Box were among the stocks making the biggest moves after the bell, with both companies seeing significant price swings following their quarterly earnings reports.
Overall, the day was marked by a mix of positive and negative news, reflecting the ongoing uncertainties in the market. Investors remained cautious, closely monitoring economic indicators and corporate earnings reports for signals of future market direction.
