Dow, S&P 500, and Nasdaq keep climbing: Stock market defies inflation worries

Stock futures were little changed early Wednesday after a winning session for stocks. Futures tied to the Dow Jones Industrial Average added 38 points, hovering just above the flatline, while S&P futures and Nasdaq 100 futures gained 0.09% and 0.13%, respectively.

In after-hours trading, data center company Arista Networks slid 4% despite exceeding quarterly earnings and revenue expectations, as well as providing promising guidance. Shares of Bumble fell about 18% following disappointing first-quarter guidance, with the company expecting adjusted EBITDA of $60 million to $63 million, and revenue between $242 million and $248 million, falling short of analysts’ expectations for adjusted EBITDA of $68.8 million and revenue of $256.9 million. Homebuilder Toll Brothers also slipped nearly 5% on missing earnings and revenue projections.

Investors are coming off a trading session that saw the S&P 500 notch a fresh record high, closing at 6,129.58 after adding 0.24%. The index touched an intraday record of 6,129.63 before the closing bell. The tech-heavy Nasdaq Composite edged higher by 0.07% to end at 20,041.26, while the Dow Jones Industrial Average gained 10 points, or 0.02%, to close at 44,556.34. Despite concerns around inflation and President Donald Trump’s trade policies, Craig Johnson, chief market technician at Piper Sandler, noted the stock market’s resiliency and indicated that choppy market conditions are expected as investors rotate ‘down-cap.’ Johnson also mentioned the impact of declining Treasury yields, weakening crude oil, and a pullback in the U.S. dollar.

Meta Platforms saw its stock snap a 20-day winning streak during Tuesday’s trading session, ending the day at $716.37 per share, down 2.76%. This stock remains up 22.35% for the year, making it the standout among the ‘Magnificent 7’ group of U.S. megacap technology companies.

Intel stock skyrockets 16% but Wall Street thinks a split is inevitable

Cadence Design Systems saw its shares decline about 5%, despite exceeding quarterly earnings and revenue forecasts. However, its full-year guidance fell below analyst expectations. CEO Anirudh Devgan mentioned that the company had record bookings and backlog for 2024.

Howard Hughes Holdings shares slipped about 5% after Bill Ackman’s Pershing Square increased its takeover offer, vowing to turn it into a “modern-day” Berkshire Hathaway. The new proposal aims to buy 10 million newly issued shares at $90 each, higher than the previous offer of $85 per share.

Intel (INTC) shares posted a significant five-day gain following reports that Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) are considering bids for parts of Intel. On the other hand, a temporary halt was noted in Walgreens Boots Alliance shares, which increased 14% after renewed discussions regarding a possible sale to Sycamore Partners.

Meanwhile, Medtronic reported a revenue increase of 2.5% year-over-year to $8.29 billion. However, this fell short of analysts’ expectations, contributing to a more than 7% drop in its shares. Additionally, Conagra Brands cut its sales outlook, citing supply chain issues, which led to a 5.5% drop in its shares.

Gold prices are nearing $3,000 per troy ounce, with analysts offering mixed forecasts on future prices. Goldman Sachs raised its forecast to $3,100 per ounce, while Morgan Stanley projected prices could drop to $2,700 by year-end.

In oil markets, Brent crude futures gained 20 cents, or 0.3%, while West Texas Intermediate crude rose 23 cents, also 0.3%. This rally comes against the backdrop of the ongoing tensions related to the Ukraine-Russia war.

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