- Major U.S. stock indexes hovered near break-even after paring earlier losses, as investors weighed mixed economic signals and awaited further Fed guidance.
- Financial stocks provided support, while tech shares remained under pressure amid ongoing AI earnings scrutiny.
- The Dow posted modest gains, reflecting a rotation from growth to value names.
U.S. stocks recouped most of their early declines by midday trading, with the S&P 500 and Nasdaq Composite hovering just above the flatline. The Dow Jones Industrial Average eked out a slight gain, helped by strength in financials and industrials, as investors digested the latest inflation data and corporate earnings.
Markets opened lower following a selloff in tech shares, as traders continued to parse AI-related earnings guidance from major software companies. However, losses were gradually trimmed as buying interest emerged in value-oriented sectors. “The market is struggling to find direction,” said one portfolio manager. “Every data point and Fed comment is being scrutinized for clues on the next move.”
The Federal Reserve’s stance remains a key driver, with recent comments from policymakers suggesting rates could stay higher for longer. This has tempered risk appetite, particularly in high-growth tech names, while supporting financials, which benefit from wider net interest margins. “We're seeing a tug-of-war between cautious sentiment and the allure of cheap valuations in certain cyclicals,” an analyst noted.
Economic data released this morning showed core inflation easing slightly, though still above the Fed’s target. This mixed picture has left traders uncertain about the timing of potential rate cuts. Without a clear catalyst, near-term moves are expected to be range-bound.
Efforts to reach representatives of the New York Stock Exchange for comment were unsuccessful. A correction will be issued if necessary.
(This story has been updated to reflect midday trading levels.)