U.S. equity markets showed a mixed performance late Wednesday morning, with the Dow Jones Industrial Average advancing while the Nasdaq Composite pulled back from its recent record highs. The S&P 500 hovered near the flatline as investors took a breather following a string of new highs earlier in the week.
According to Reuters data from LSEG, the Dow rose 0.51% to 50,718.64, the S&P 500 edged up 0.03% to 7,521.43, and the Nasdaq slipped 0.07% to 26,638.26. All values were delayed at least 15 minutes.
The pause came after both the S&P 500 and Nasdaq set new all-time highs on Tuesday, driven by surging demand for artificial intelligence and a rally in semiconductor stocks. Micron Technology (MU) reached a $1 trillion market capitalization after UBS raised its price target on the memory chipmaker.
Goldman Sachs raised its year-end 2026 S&P 500 target to 8,000 from 7,600, citing robust earnings growth. The investment bank also increased its earnings-per-share estimates for 2026 and 2027.
Oil prices declined sharply, with Brent crude falling 3.35% to $96.24 per barrel. The drop in energy costs provided a tailwind for companies with high fuel expenses, including cruise line Norwegian Cruise Line Holdings (NCLH) and United Airlines Holdings (UAL), both of which traded higher in early action. Conversely, energy stocks such as Exxon Mobil (XOM) and Chevron (CVX) lost ground, with the energy sector falling 1.5%.
The 10-year Treasury yield edged lower to 4.465%, providing some support for growth-oriented stocks as lower yields tend to favor such names. Consumer discretionary shares led the day's gains, while technology slipped 0.2% after reaching a record high the previous day. Micron (MU) advanced 3.8%, Western Digital (WDC) gained 2.5%, and Seagate Technology (STX) rose 3.2%. Nvidia (NVDA) fell 1.7%, and the Philadelphia semiconductor index ended down 0.7%.
In corporate news, Zscaler (ZS) weighed on software stocks after the cloud-security firm issued fourth-quarter revenue guidance of $875 million to $878 million, slightly below the $878.6 million analysts had expected, even as it beat earnings and sales estimates for the quarter.
Retail names received a boost from Bath & Body Works (BBWI), whose shares climbed after the company topped first-quarter sales and earnings estimates, driven by demand for its affordable luxury products such as candles and personal care items.
Market strategists cautioned that the focus could shift back to the Federal Reserve and geopolitical tensions in the Middle East once earnings season winds down. Traders are also eyeing Thursday's release of the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation measure, for clues on the central bank's next moves.
A Reuters poll of 47 strategists, analysts, and portfolio managers set the S&P 500's median year-end target at 7,620, just 1.3% above Tuesday's close. Anthony Saglimbene, chief market strategist at Ameriprise, highlighted strong momentum from AI but pointed to headwinds from higher energy prices and rising rates. Chris Zaccarelli of Northlight Asset Management noted that the AI "arms race" could continue to push stocks higher for now.
