Many equities in the U.S finished mixed in quiet, post-holiday trading session on Wednesday. The S&P 500 gained 0.2%, the Dow Jones Industrial Average lost a fraction, the Russell 2000 lost 0.5% and the Nasdaq Composite gained 0.7%. Treasury bonds were generally stable, gold gained 0.2%, the dollar was mixed and oil broke its eight-session winning streak with a 4.1% decline.
Breadth was negative with 1.6 decliners for every advancer on the NYSE with volume at 92% of the 30-day average. Technology stocks led the way with a 1% gain while energy was the laggard, down 1.3%.
Nvidia Corporation (NASDAQ:NVDA) recorded a 2.7% gain after the company announced an AI-focused partnership with Baidu Inc (ADR) (NASDAQ:BIDU) to build its cloud-based footprint but bring the Volta GPUs to AI home assistants and self-driving vehicles. Tesla Inc (NASDAQ:TSLA) lost 7.2% after the company announced second-quarter deliveries of “just over” 22,000 against the 24,185 that was expected.
Goldman analysts scaled down their price target and predicated a decline in the demand of the Model S/X. The result is a massive technical breakdown, pushing shares below their 50-day moving average.
The recent rise in oil has been widely characterized by overly bearish sentiments in the midst of disappointment with OPEC’s supply freeze agreement amid bloated inventories, increased U.S. shale activity and tepid U.S. gasoline demand.
The main catalyst in the latest reversal lower was chatter that Russia wants to retain the current supply freeze deal as well as comments by International Energy Agency chief Fatih Birol on Tuesday that while he expects the global energy market to rebalance by the second half of the year output increased by Libya and Nigeria could hamper the process.
Lastly, on the economic side, the Federal Reserve released the minutes from their June policy meeting noting most policymakers dismissed recent weakness in the inflation data as related to specific factors like price pressure in wireless plans and prescription drugs. There were disagreement on the timing of the start of the balance sheet roll off process, with some preferring to start within a couple of months while others preferred waiting until the end of the year.