Stock Market Holds Steady as Investors Await Earnings and Economic Signals
U.S. stock markets closed mixed on Wednesday, with the S&P 500 ending the day nearly flat and hovering less than 1% below its record high, as investors weighed optimism over a potential Israel-Iran ceasefire against persistent concerns about U.S.-China trade tensions and upcoming economic data.
The S&P 500 finished at 6,092.16, just shy of its all-time high of 6,147.43, while the Nasdaq Composite rose 0.31% to 19,973.55. The Dow Jones Industrial Average slipped by 106.59 points, or 0.25%. The tech sector continued to show strength, with Nvidia shares climbing 4% to a new 52-week high, and gains from Alphabet and AMD further boosting sentiment.
Investor optimism was buoyed by news of a fragile ceasefire between Israel and Iran, which helped propel the S&P 500 to within striking distance of its record. The ceasefire, brokered earlier in the week, eased geopolitical tensions that had weighed on markets, though President Donald Trump expressed ongoing concerns and urged both sides to uphold the agreement. Meanwhile, oil prices dropped sharply, with West Texas Intermediate crude futures falling 6% on Tuesday, contributing to the market’s positive momentum.
However, trade tensions between the U.S. and China remained a source of uncertainty. Recent escalations saw the U.S. raise tariffs on Chinese goods to 125%, prompting China to retaliate with an 84% tariff on U.S. imports. Both sides have paused reciprocal tariffs on other countries, but the standoff continues to cloud the outlook for global trade and inflation.
On the corporate front, investors are closely watching upcoming earnings reports from McCormick and Nike. Nike is set to release its fiscal fourth-quarter results on Thursday, with analysts projecting an 88% year-over-year decline in earnings and a 15% drop in sales. The company has struggled with weak performance and is expected to report a contraction in gross margin due to aggressive inventory clearance, reflecting broader challenges in the consumer sector.
Economic data will also be in focus, with pending home sales figures and remarks from Cleveland Federal Reserve President Beth Hammack expected to provide further direction. Hammack, in a recent speech, indicated there is no imminent need to cut interest rates, citing the economy’s resilience and lingering uncertainty over the impact of tariffs on inflation. She suggested the Fed would maintain its current policy stance until more data becomes available.
Trending stocks included Altimmune, Micron, and Super Micro Computer (SMCI), driven by speculation around clinical trial results, growth in artificial intelligence, and potential short squeezes.
As the S&P 500 approaches record territory, investors remain cautious, balancing hopes for a sustained rally with concerns about trade policy, inflation, and the pace of economic growth.