DJI: Dow Jones Logs Sixth Day of Gains, Tech Shares Drag Nasdaq Lower

Markets are weighing incoming data in hopes of interest rate cuts. But it’s not that black and white.

• The Dow Jones Industrial Average DJI soldiered on with a 0.4% gain and was the only major US index to make it into green on Wednesday. The 30-stock benchmark average extended its winning streak to six straight sessions as real-economy stocks powered higher. It was its longest string of daily increases so far this year. The Dow’s two peers, however, weren’t so fortunate.
• The S&P 500 and the Nasdaq Composite staged a disappointing performance. The broad-based S&P 500 clocked out virtually flat with a 0.03-point decline — its tiniest move in six years. The Nasdaq Composite was dragged 30 points underwater largely due to a tech stock rout. Investors sold off shares of Shopify SHOP, which tumbled 19% on slow growth projections, and Uber UBER, which dropped 5.7%.
• Earnings reports by corporate America are nearly finished. Despite some individual stocks crumbling under the pressure of high interest rates and waning consumer demand, the S&P 500 companies that have updated so far have shown a 5.2% earnings growth. Conflicting economic data continue to baffle markets. Expectations for rate cuts have dwindled, but April’s softer jobs report rekindled hopes of lower borrowing costs.