Overview

• The Dow fell 0.37%, the S&P 500 lost 0.28% and the Nasdaq eased 0.33% on Wednesday as weakness in several megacap technology names curbed recent gains.
• The U.S. 10-year Treasury yield edged up to about 4.14% from 4.11%, and caution extended to Europe where France’s CAC 40 was down roughly 0.4% early Thursday.
• Traders are watching weekly jobless claims and an annual GDP revision on Thursday and the Fed’s preferred PCE inflation gauge on Friday, with CME FedWatch still implying two additional quarter-point cuts this year.
• Fed Chair Jerome Powell warned against overly sustained rate reductions this week, while San Francisco Fed President Mary Daly acknowledged the need for more cuts but highlighted timing uncertainty and Governor Michelle Bowman argued for continued easing.
• Stock moves were mixed as Intel rallied on a Bloomberg report it approached Apple and on Nvidia’s plan to buy about $5 billion of its shares, Micron fell despite a strong beat and raised outlook, Alibaba jumped on a newly announced AI collaboration with Nvidia, and Lithium America surged on press reports of possible U.S. government interest.