Wall St set to snap three-day streak of losses despite Mideast clashes
NEW YORK: The major US stock indexes were set to end a three-day losing streak on Wednesday, as investors cautiously dipped back into equities despite renewed clashes in the Middle East.
The gains offer some respite at a time when geopolitical tensions have returned to the forefront, ending the uneasy calm of recent weeks.
Value-oriented corners of the market outperformed tech, with materials leading gains on the S&P 500 benchmark, with a 1.49 percent rise.
“One has to be adaptive. You need to be willing to reduce exposure at the right times, and have the capacity to reinvest very quickly,” said Yung-Shin Kung, chief investment officer at Mast Investments.
Earnings from Dell also boosted sentiment toward AI stocks after the company raised its annual profit and revenue forecasts on robust demand for its AI-optimized servers.
Its shares rose 5.35 percent, while the S&P 500 tech sector gained 0.45 percent. Nvidia jumped 4.65 percent, outperforming the Magnificent Seven group of stocks.
At 12:00 p.m. ET, the Dow Jones Industrial Average rose 287.55 points, or 0.55 percent, to 53,056.06, the S&P 500 gained 44.35 points, or 0.58 percent, to 7,675.82 and the Nasdaq Composite gained 135.73 points, or 0.52 percent, to 26,235.50.
US private payrolls increased less than expected in August, the ADP National Employment Report showed, ahead of what is expected to be a closely watched nonfarm payrolls print on Friday.
“The bigger picture likely will remain that the apparent upturn in employment growth in the spring already has faded,” said Oliver Allen, senior US economist at Pantheon Macroecon omics.
Traders were also watching yields on US Treasuries. The 10-year Treasury yield was marginally higher and was close to levels not seen since January 2025.
Elevated yields on risk-free US Treasuries reduce the appeal of taking on the added risk of buying stocks.
“Investors are very concerned about the upward trend in global bond yields and as a result, are lightening their exposure to equities where they have substantial profits,” said Sam Stovall, chief investment strategist at CFRA Research.