The Dow Jones fell 400 points from the day’s high but still ended 250 points higher to post a record closing high. The index gained for the fifth day running. The S&P 500 closed below the flat line, while the Nasdaq Composite and the Nasdaq 100 both fell 0.8% each.
Both Nasdaq and the S&P 500 snapped a four-day losing streak. The S&P 500 had added $3.7 trillion in market capitalisation during the four-day rally.
Which Stock Took The Dow Jones Higher?
Shares of Nvidia were the biggest contributors to the Dow Jones gains through Wednesday’s trading session. The stock gained over 3% after Elon Musk, the SpaceX CEO said during the earnings call that the company will exclusively use Nvidia chips to build its AI infrastructure.
The comments from Musk brought down shares of Nvidia’s peer AMD, which fell 7% and was already under pressure due to its underwhelming sales guidance for the ongoing quarter.
Which Stock Dragged The Dow Jones Lower?
The Dow Jones was pulled down on Wednesday due to Google-parent Alphabet, which fell 4% due to changes at the top of its AI division.
During mid-day, Alphabet announced that Jeff Dean, the company’s Chief Scientist, will be leaving after a 27-year stint to start a company of his own.
Alphabet, a recent addition to the Dow Jones, not only put pressure on the index, but also on its peers, S&P 500 and Nasdaq.
Pressure On SpaceX Continues
Despite improving financials in the second quarter, shares of SpaceX, the biggest IPO in history, fell 13% on Wednesday, and are now down 20% from their IPO price of $135.
The company’s spending plans disappointed the street as they are expected to remain elevated, although analysts tracking the stock continue to remain bullish on it.
Another factor that will keep the stock under pressure today is the end of its shareholder lock-in period, which will result in shares worth over $100 billion become eligible to be traded.
Crude Oil Prices Remain Stable
Investors on Wall Street also await more clarity on what happens between the US and Iran after US President Donald Trump said “We’ll know in 48 hours on Iran”, while speaking to reporters in Los Angeles.
In separate developments, Iran said that an agreement with Oman had been reached on the Strait of Hormuz and the final joint statement is currently in the drafting process. Iran also reiterated that a deal will be struck if “certain third parties do not obstruct the process.”
Brent Crude prices remained steady at around $80 a barrel, while the US Crude prices (WTI) are trading around $75.
ADP Jobs Report
Private payrolls data reported on Wednesday turned out to be weaker than expectations. Companies added only 44,000 jobs in July, the lowest this year, and also below consensus expectations.
All eyes are now on Friday’s non-farm payrolls report, which is projected to see an addition of 80,000 in July.
