US close: Stocks mixed as Powell maintains hawkishness

Wall Street’s main stock gauges closed a turbulent session in a mixed state on Wednesday, as Federal Reserve chairman Jerome Powell reinforced the likelihood of two more interest rate increases this year.

At the close, the Dow Jones Industrial Average was down 0.22% at 33,852.66,, while the S&P 500 saw a marginal dip of 0.04% to 4,376.86.

In contrast, the technology-heavy Nasdaq Composite advanced 0.27% to finish the trading day at 13,591.75.

Meanwhile, the dollar was last down 0.04% on sterling at 79.11p, while it fell 0.01% against the common currency to trade at 91.62 euro cents.

The greenback also lost value on the yen, falling 0.09% to change hands at JPY 144.35.

“The Dow’s position as one of the poor performers this year has been restated this afternoon, as Powel reaffirmed his commitment to more rate hikes,” said IG chief market analyst Chris Beauchamp.

“The Fed chairman seems determined to restate the Fed’s hawkish attitude at every opportunity, but other central bankers today have been more circumspect, giving room for European indices to rally.”

Beauchamp added that Washington’s potential move to limit AI chip sales to China had not held back the Nasdaq.

“The recent pullback, barely deserving of that name, seems to have run its course - investor appetite for anything remotely connected to AI remains undimmed.

“In bull markets, it pays to follow the momentum, and once more that momentum is best found in the Nasdaq.”

US trade deficit shrinks; potential AI chip export restrictions loom

On the economic front, preliminary data from the Department of Commerce indicated a decrease in the US goods trade deficit, falling from $97.1bn in April to $91.1bn in May.

The reduction indicated a boost in exports or a decrease in imports, or a combination of the two, suggesting possible improvements in international trade balance.

A report meanwhile emerged that the US government could be considering imposing restrictions on the export of artificial intelligence (AI) chips to China.

The potential implications of the decision could escalate tensions in already-strained US-China trade relations, although it did little to dampen spirits among tech equities on Wednesday.

Mixed performance sees Spirit AeroSystems and General Mills decline

In equities, aerospace firm Spirit AeroSystems closed down 0.96% despite it reaching a preliminary agreement on a new wage deal with machinists.

A vote on the proposed agreement was set down for Thursday.

Spirit’s major client Boeing ended the day on a different note, however, with the aircraft manufacturing giant rising 0.62%.

Food producer General Mills dropped 5.17% after reporting quarterly sales that fell short of market expectations.

On a brighter note, biopharmaceutical play Roivant Sciences ended the day 11.27% firmer after it reported a narrower net loss for its fourth quarter to March 31.

The reported loss of $33.6m, or 20 cents per share, was a marked improvement from its loss of $270.1m, or 39 cents per share, recorded a year prior.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $212.17 1.60%
Walgreens Boots Alliance, Inc. (WBA) $29.08 1.54%
American Express Co. (AXP) $169.78 0.95%
Chevron Corp. (CVX) $154.61 0.91%
Dow Chemical Co. (DOW) $52.87 0.74%
Verizon Communications Inc. (VZ) $36.83 0.74%
Apple Inc. (AAPL) $189.25 0.63%
Boeing Co. (BA) $210.56 0.62%
Walmart Inc. (WMT) $155.33 0.54%
Caterpillar Inc. (CAT) $242.04 0.49%

Dow Jones - Fallers

Travelers Company Inc. (TRV) $168.26 -2.45%
Home Depot Inc. (HD) $306.51 -2.30%
Unitedhealth Group Inc. (UNH) $474.45 -1.68%
Intel Corp. (INTC) $33.57 -1.55%
Coca-Cola Co. (KO) $60.48 -0.93%
Merck & Co. Inc. (MRK) $112.36 -0.78%
Amgen Inc. (AMGN) $221.31 -0.58%
Nike Inc. (NKE) $113.03 -0.51%
International Business Machines Corporation (CDI) (IBM) $131.61 -0.44%
JP Morgan Chase & Co. (JPM) $138.59 -0.44%

S&P 500 - Risers

Carnival Corp. (CCL) $17.29 8.81%
Norwegian Cruise Line Holdings Ltd (NCLH) $21.07 7.55%
CenturyLink Inc. (LUMN) $2.18 4.31%
Weyerhaeuser Co. (WY) $33.21 4.27%
Dish Network Corp. (DISH) $6.60 3.61%
Jefferies Financial Group Inc. (JEF) $33.07 3.54%
Netflix Inc. (NFLX) $429.84 3.06%
Borg Warner Inc. (BWA) $47.69 2.93%
Mattel Inc. (MAT) $18.98 2.87%
Ford Motor Co. (F) $14.79 2.64%

S&P 500 - Fallers

Fiserv Inc. (FI) $0.00 -100.00%
Sl Green Realty Corp. (SLG) $28.50 -7.23%
General Mills Inc. (GIS) $76.72 -5.17%
Hanesbrands Inc. (HBI) $4.34 -4.63%
Albemarle Corp. (ALB) $216.90 -4.43%
Vornado Realty Trust (VNO) $16.68 -4.41%
Gap Inc. (GPS) $8.54 -4.26%
Hershey Foods Corp. (HSY) $249.59 -3.97%
J. M. Smucker Co. (SJM) $145.13 -3.73%
ConAgra Brands Inc (CAG) $33.05 -3.48%

Nasdaq 100 - Risers

Qurate Retail Inc. (QRTEA) $0.94 7.79%
Sirius XM Holdings Inc (SIRI) $4.27 4.40%
Mercadolibre Inc. (MELI) $1,207.69 3.92%
Dish Network Corp. (DISH) $6.60 3.61%
Netflix Inc. (NFLX) $429.84 3.06%
Tesla Inc (TSLA) $256.24 2.41%
Alphabet Inc. Class C (GOOG) $121.08 1.74%
Charter Communications Inc. (CHTR) $359.14 1.57%
Alphabet Inc. Class A (GOOGL) $120.18 1.56%
Walgreens Boots Alliance, Inc. (WBA) $29.08 1.54%

Nasdaq 100 - Fallers

Fiserv Inc. (FI) $0.00 -100.00%
JD.com, Inc. (JD) $34.79 -2.69%
Regeneron Pharmaceuticals Inc. (REGN) $700.03 -2.24%
QUALCOMM Inc. (QCOM) $117.54 -1.88%
Nvidia Corp. (NVDA) $411.17 -1.81%
Applied Materials Inc. (AMAT) $144.03 -1.72%
Monster Beverage Corp (MNST) $57.15 -1.69%
Kraft Heinz Co. (KHC) $35.04 -1.57%
Intel Corp. (INTC) $33.57 -1.55%
Baidu Inc. (BIDU) $141.79 -1.47%