Major indexes turned in a mixed performance on Wednesday as stocks failed to build on early-session momentum and last week's election-fueled rally continues to fade.
The Dow Jones Industrial Average closed 0.1% higher, while the S&P 500 rose fractionally and the Nasdaq Composite slipped 0.3%. The major indexes were coming off losses on Tuesday as the market took a breather after hitting a series of record highs following Donald Trump's victory in the presidential election and the Federal Reserve's move to cut interest rates last week.
Stocks got off to a good start on Wednesday as the closely watched consumer price index report showed that prices rose 0.2% last month, while annual inflation came in at 2.6%, with both numbers in line with economists' estimates. The data helped reinforce expectations that the Fed will cut rates again at its policy meeting in December, but it wasn't enough to boost investor sentiment throughout the session.
The yield on 10-year Treasurys, which is correlated to expectations around interest rates, rose to 4.45% after dipping as low as 4.36% shortly after the inflation report. The yield has been rising in recent weeks as investors have recalibrated their thinking on how aggressive the Fed will be in its moves to cut interest rates in the months ahead.
Tesla (TSLA), which has gained more than 30% over the past week as investors bet that the EV maker stands to benefit from CEO Elon Musk's close relationship with the president-elect, finished 0.5% higher after rising nearly 5% earlier in Wednesday's session. Other mega-cap technology stocks were mixed, with Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN) rising while AI investor favorite Nvidia (NVDA), Alphabet (GOOGL) and Meta Platforms (META) lost ground.
Among other noteworthy movers Wednesday, shares of Super Micro Computer (SMCI) fell 6.3%, leading Nasdaq decliners, after the company said it would not submit its fiscal first-quarter results in a timely manner. Rocket Companies (RKT) was down 9.1% after the online financial platform badly missed revenue estimates and gave soft guidance, citing a housing market that continues to be squeezed by high borrowing costs.
Shares of Cava Group (CAVA) ended 1.6% higher, well off their near-20% rise early in the session after the fast-casual restaurant chain reported strong earnings. Streaming giant Spotify (SPOT) gained 11% after releasing its results late yesterday.
Bitcoin was trading around $90,000 after surging to a new record high above $93,000 earlier Wednesday. The cryptocurrency has gained more than 30% since the election amid hopes that a supportive White House and Congress will implement policies that benefit the asset class.
Gold was down 1% at around $2,580 an ounce. The precious metal, which hit a record high of $2,800 early last week, has lost ground since the election as the U.S. dollar has strengthened.
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