The S&P 500 Index closed nearly flat on Wednesday, down 0.04%, while the Dow Jones Industrial Average fell 0.57% to a 1.5-week low. In contrast, the Nasdaq 100 gained 0.58%, buoyed by strong performance in technology stocks, particularly in AI infrastructure, as companies like NXP Semiconductors and Seagate Technology reported better-than-expected earnings. The mixed market sentiment was driven by rising crude oil prices, which surged over 6% due to geopolitical tensions, raising inflation expectations and bond yields.

The increase in WTI crude to a three-week high reflects ongoing disruptions in the Strait of Hormuz, with Goldman Sachs estimating a significant reduction in oil output from the Persian Gulf. Meanwhile, the Federal Reserve’s decision to maintain interest rates, coupled with hawkish comments from Chair Powell, added pressure on equities. Notably, three FOMC members dissented against an easing bias, indicating a cautious stance on monetary policy amidst rising inflation concerns.

Investors should closely monitor upcoming earnings reports from major tech firms, as strong results could further influence market dynamics. With 81% of S&P 500 companies beating Q1 earnings estimates so far, the potential for continued upward momentum in technology stocks remains a key focus for market professionals.

StoxFeed tracks this as a market signal: Oil prices are responding to OPEC decisions and geopolitical tensions

Source: nasdaq.com