The Dow Jones Industrial Average closed at 26,004.83 on Wednesday with a loss of 43.68 points or -0.17%. The S&P 500 closed at 2,879.84 for a loss of 5.88 points or -0.20%. The Nasdaq Composite closed at 7,792.72 for a loss of 29.85 points or -0.38%. The VIX Volatility Index was lower at 15.91 for a loss of 0.08 points or -0.50%.
Wednesday’s market movers
U.S. indexes closed lower for a second day on Wednesday. Stocks gave back more gains in another day of selling as pricing gave way to more reasonable valuations involving Mexico trade. Investors turned their attention back to trade negotiations with China, which are focusing on a potential meeting at the G20 Summit in June. Technology stocks also continued their losses after a House Judiciary Committee hearing Tuesday and several new headlines on big tech increased potential reform risks. Alphabet (GOOGL, Financial)(GOOG, Financial) has released many large lobbying firms and restructured its Washington representation. Meanwhile, the Justice Department, Congress and state attorneys general are also reporting investigations at Alphabet. Facebook (FB, Financial) was also in the headlines Wednesday after reported concerns over emails connecting Mark Zuckerberg with awareness of problematic privacy practices.
Investors were also watching expectations for the Federal Reserve’s next move at its June 18 meeting with the release of the Consumer Price Index (CPI). The CPI increased 0.1% in May and 1.8% year over year, further supporting concerns that the Fed may need to cut rates to keep inflation closer to its 2% target.
Economic reports affecting market trading included the following:
- The Consumer Price Index increased 0.1% in May and 1.8% year over year. The Core Consumer Price Index excluding food and energy increased 0.1% in May and 2% year over year.
- The MBA Mortgage Applications Index increased 26.8% following an increase of 1.5% in the previous week. The MBA’s average 30-year mortgage rate decreased to 4.12% from 4.23%.
- The EIA’s Weekly Petroleum Status Report showed crude oil inventory increasing by 2.206 million barrels to 1.13 billion barrels.
- The Treasury held an auction for 10-year notes at a rate of 2.130%.
- The Monthly Budget Statement for May showed a deficit of $208 billion following a surplus of $160 billion.
In the Dow Jones Industrial Average, the following stocks led losses:
- Goldman Sachs (GS, Financial) -2.32%
- Cisco (CSCO, Financial) -2.19%
- Exxon Mobil (XOM, Financial) -1.79%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,519.79 for a gain of 0.68 points or 0.05%. The S&P 600 closed at 921.83 for a loss of 2.21 points or -0.24%. The Dow Jones Small-Cap Growth Total Stock Market Index closed at 9,736.78 for a gain of 2.18 points or 0.02%. The Dow Jones Small-Cap Value Total Stock Market Index closed at 9,370.07 for a loss of 1.08 points or -0.01%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,901.72 for a loss of 2.16 points or -0.11%; the S&P 100 at 1,270.39 for a loss of 3.19 points or -0.25%; the Russell 3000 at 1,693.52 for a loss of 3.09 points or -0.18%; the Russell 1000 at 1,594.84 for a loss of 3.18 points or -0.20%; the Wilshire 5000 at 29,533.14 for a loss of 56.20 points or -0.19%; and the Dow Jones U.S. Select Dividend Index at 695.14 for a loss of 0.01 points or -0.01%.
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