FX.co ★ U.S. Stocks Move To The Upside, Nasdaq And S&P 500 Reach Record Highs

On Wednesday, stocks predominantly trended upwards, with major indices experiencing gains after two consecutive sessions of mixed closings. The Nasdaq and the S&P 500 both achieved new record intraday highs as part of this upward trajectory.

During the trading session, the Nasdaq saw an increase of 191.31 points, or 1.0%, reaching 19,672.22, while the S&P 500 climbed 23.96 points, or 0.4%, to 6,073.84. Meanwhile, the Dow Jones Industrial Average, despite not reaching its peak for the day, rose by 176.64 points or 0.4%, settling at 44,882.17, following two days of declines.

The rally in the Dow was partly driven by a notable surge in Salesforce (CRM) shares, which appreciated by 8.5% after the company exceeded expectations with its fiscal third-quarter revenue report. Additionally, Marvell Technology (MRVL) soared by 21.4% post-earnings announcement, surpassing estimates and bolstering the tech sector's performance.

Optimism concerning potential interest rate adjustments also contributed to the bullish sentiment on Wall Street, following the release of U.S. economic data that fell short of expectations. Payroll processor ADP reported that private sector employment in November rose by 146,000 jobs, slightly below forecasts, following a downward revision of October's increase to 184,000 jobs. Economists had projected a growth of 165,000 jobs, contrasting with the initial report of a 233,000-job surge in the preceding month.

Moreover, the Institute for Supply Management released data indicating that growth in the U.S. service sector decelerated more than anticipated in November. The services PMI declined to 52.1 from October's 56.0; although still indicative of growth, the reading was expected to decrease to only 55.5.

In the wake of these reports, CME Group's FedWatch Tool now suggests a 75.7% probability that the Federal Reserve will reduce interest rates by 25 basis points later this month.

**Sector Highlights:**

Computer hardware stocks saw significant upward movement, with the NYSE Arca Computer Hardware Index rising by 3.0%. Pure Storage (PSTG) was a prominent sector leader, gaining 20.3% after surpassing fiscal third-quarter expectations. Software stocks also displayed considerable strength, with the Dow Jones U.S. Software Index advancing 2.7% to reach a record intraday high. Meanwhile, airline, networking, and semiconductor stocks performed strongly, whereas housing and energy stocks experienced notable declines.

**International Markets:**

In the Asia-Pacific region, stock markets delivered mixed results on Wednesday. Japan's Nikkei 225 Index edged up by 0.1%, opposed by a 0.4% decline in China's Shanghai Composite Index. Similarly, European markets exhibited varied outcomes, with the U.K.'s FTSE 100 Index dropping by 0.2%, contrasted by a 0.8% increase in France's CAC 40 Index and a 1.1% rise in Germany's DAX Index.

In the bond markets, treasuries regained stability near the unchanged mark after initial weakness, resulting in the yield on the benchmark ten-year note, which inversely correlates with its price, dipping by less than a basis point to 4.217%.