Overview

• S&P 500, Dow and Nasdaq fell roughly 0.3%–0.4% on Wednesday, extending a pullback from record highs set earlier in the week.
• Fed Chair Jerome Powell said asset prices look “fairly highly valued” and warned that cutting rates too fast could rekindle inflation, cooling easing hopes.
• Weekly jobless claims dropped to 218,000, undercutting expectations for a rise and complicating forecasts for the timing and depth of rate cuts.
• Tech moves diverged as Micron slipped despite strong results and guidance, while AI enthusiasm persisted after Alibaba outlined a roughly $53 billion investment plan.
• Lithium Americas nearly doubled on reports the U.S. is considering an equity stake, and the 10-year Treasury yield hovered near 4.14% as traders await Friday’s PCE inflation reading.