S&P 500 Flirts With 5,000 As Magnificent 7 Tops $13 Trillion, NYCB Sinks: What's Driving Markets Wednesday?

Wednesday is a bullish day on Wall Street, with major large-cap indices extending record highs, aided by robust corporate earnings. Despite the overall market optimism, concerns linger within segments such as regional banks, highlighting investor caution.

The S&P 500 surged to an intraday high of 4,995 points, inching up 0.6%, while the tech-centric Nasdaq 100 slightly outpaced it with a gain of 0.8%. Small-cap stocks experienced a modest dip, declining by 0.3%.

The so-called Magnificent Seven — Apple Inc. AAPL, Microsoft Corp. MSFT, Alphabet Inc. GOOG GOOGL, Amazon Inc. AMZN, Meta Platforms Inc. META, NVIDIA Corp. NVDA and Tesla, Inc. TSLA — collectively exceeded a market capitalization of $13 trillion, underscoring their dominant market presence.

Market movements were relatively muted in both Treasury yields and the dollar, even as Federal Reserve officials Neel Kashkari, Ariana Kugler and Susan Collins made statements Wednesday, reinforcing the message that the central bank is not poised to cut rates in the immediate future.

New York Community Bancorp NYCB saw a further 8% decline following downgrades by Moody’s and Fitch to its credit rating, accompanied by Bank of America and JPMorgan adjusting their stock recommendations from Overweight to Neutral.

In the cryptocurrency space, Bitcoin BTC/USD advanced 1.3% to $43,600, positioning itself for the highest close since Jan. 12.

Wednesday’s Performance In Major Indices, ETFs

The SPDR S&P 500 ETF Trust SPY was 0.7% higher to $497.13, the SPDR Dow Jones Industrial Average DIA rose 0.4% to $386.51 and the tech-heavy Invesco QQQ Trust QQQ rose 0.8% to $430.97, according to Benzinga Pro data.

Sector-wise, the Consumer Discretionary SPDR Select Sector Fund XLY outperformed, up 0.9%, followed by the Technology SPDR Select Sector Fund XLK, up 0.8%.

The Energy SPDR Select Sector Fund XLE, down 0.2%, was the laggard.

Wednesday’s Stock Movers

• Emerson Electric EMR rose over 11% after reporting stronger-than-expected earnings.
• Snap Inc. SNAP fell 35% after missing revenue estimates and issuing weak guidance.
• Enphase Energy Inc. ENPH rose nearly 18% despite missing both revenue and earnings expectations. Oppenheimer upgraded the stock from Neutral to Overweight.
• Other companies reacting to earnings were Amgen Inc. AMGN, down nearly 5%, Gilead Sciences Inc. GILD, down over 3%, Chipotle Mexican Grill Inc. CMG, up 8%, Ford Motor Company F, up 4%, Fortinet Inc. FTNT, up 0.8%, Uber Technologies Inc. UBER, up nearly 1%, CVS Health Corp. CVS, up 2%, Hilton Worldwide Holdings Inc. HLT, up 1.2% and Roblox Corp. RBLX, up 9%.
• Companies set to report after market close are Walt Disney Company DIS, McKesson Corp. MCK, Paypal Holdings Inc. PYPL and O’Reilly Automotive Inc. ORLY

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