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Tech Stocks Ease As Treasury Yields Rise, Commodity Rally Fuels Sector Rotation: What’s Driving Markets Wednesday? – Carnival (NYSE:CCL), SPDR Dow Jones Industrial Average ETF (ARCA:DIA)

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A session marked by sector rotation is unfolding on Wednesday, with the tech sector giving back some of Tuesday’s gains, making way for the advance of energy and materials sectors following a surge in commodities prices.

The S&P 500 remained flat at 1 p.m. in New York, while the tech-heavy Nasdaq 100 declined by 0.5%. In contrast, blue-chip and small-cap stocks saw increases of 0.5% and 0.6%, respectively.

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Treasury yields saw a slight uptick, causing the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) to decline for the fifth consecutive session.

Commodities emerged as the strongest performers in the market. Copper surged by over 3%, reaching highs last observed in April 2023 as China announced plans to reduce output. Silver rose by 3.6% to $25/oz, the highest level since early December 2023, driven by growing demand for precious metals.

Gold was up 1%, on track to erase Tuesday’s losses, driven by a sharper-than-expected inflation surge in February.

Oil prices saw a nearly 2% surge, with West Texas Intermediate (WTI) rebounding to $79 a barrel, following a larger-than-anticipated decline in U.S. crude inventories last week.


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Wednesday’s Performance In Major US Indices, ETFs

Major Indices & ETFs Price 1-Day %Chg
Russell 2000 2,079.28 0.7%
Dow Jones 39,190.39 0.5%
S&P 500 5,177.94 0.1%
Nasdaq 100 18,103.23 -0.6%

The SPDR S&P 500 ETF Trust (NYSE:SPY) was flat at $516.85, the SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.5% higher to $392.60 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) fell 0.6% to $441.06, according to Benzinga Pro data

Sector-wise, the Energy Select Sector SPDR Fund (NYSE:XLE), was the top performer, up by 1.7%, followed by the Materials Select Sector SPDR Fund (NYSE:XLB), up by 1.5%, while the Technology Select Sector SPDR Fund (NYSE:XLK) trailed, down by 1%.

Wednesday’s Stock Movers

  • Dollar Tree Inc. (NASDAQ:DLTR) tumbled nearly 15% after the company missed both quarterly earnings and revenue estimates.
  • Southern Copper Corp. (NYSE:SCCO) rallied over 10% in response to copper price gains. Other miners rallying Wednesday were Freeport-McMoRan Inc. (NYSE:FCX), up 7%, and Valero Energy Corp. (NYSE:VLO), up nearly 6%.
  • Williams-Sonoma Inc. (NYSE:WSM) soared nearly 20% on stronger-than-expected quarterly results.
  • PayPal Holdings Inc. (NASDAQ:PYPL) rose 4% after the fintech company announced a new chief enterprise services officer.
  • Carnival Corp. (NYSE:CCL) rose over 3% following a bullish note from Goldman Sachs.
  • Tesla Inc. (NASDAQ:TSLA) fell over 3% after Wells Fargo downgraded the stock from Equal-weight to Underweight and adjusted its price target from $200 to $125.

Read now: Top 7 Biotech Winners Of Novo Nordisk, Eli Lilly’s Outsourcing Strategy For Weight-Loss Drugs: Goldman Sachs

Photo via Shutterstock.

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