U.S. stocks closed mostly higher on Wednesday, with the S&P 500 and the Dow bouncing back from lows. However, the Nasdaq’s effort to build on its recent gains hit a wall as shares of chip makers sunk and the unveiling of Apple Inc.’s new product lineup didn’t result in share pop for the world’s most-valued company.
How did main benchmarks fare?
The S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.88% edged up 1.03 points to 2,888.92, less than 0.1%, and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.83% rose 27.86 points, 0.1%, to 25,998.92. Meanwhile, the Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.70% shed 18.24 points, or 0.2%, to 7,954.23.
Only three out of the S&P 500’s 11 sectors ended lower with technology falling 0.5% while financials dropped 0.8% and utilities fell 0.1%.
The S&P 500 and the Nasdaq have risen for two straight sessions through Tuesday following a four-day skid. Recent trading has been muted and the S&P hasn’t closed with a move of 0.5% in either direction in any session thus far this month.
What drove the market?
Apple rolled out iPhone XS and XS Max with extended battery life as well as a special model equipped dual-Sim cards just for China, suggesting that the tech company is doing as much as it can to remain competitive in one of the most coveted markets in the world. However, the news did little to revive Apple /zigman2/quotes/202934861/composite AAPL -0.56% shares which slid 1.2%.
See : Apple’s live blog
On the trade front, the U.S. has reached out to China for follow-up talks after negotiations last month concluded without results, The Wall Street Journal reported Wednesday. The move is viewed as an effort to give Beijing another opportunity to resolve outstanding trade issues before the Trump administration slaps more tariffs on Chinese imports, the Journal said.
Trade tensions between the U.S. and its partners have put pressure on global markets in recent months, but American equities have continued to get a boost from encouraging economic reports and companies’ upbeat quarterly reports.
Investors this week have been tracking the fight between the U.S. and China in particular, as analysts warn that a full-blown trade war would hurt economic growth.
In the latest economic data, the wholesale cost of U.S. goods and services fell in August for the first time in a year and a half as the recent upturn in inflation appeared to ease.
The U.S. economy grew at a “moderate pace” even though there were pockets of weaker activity in certain districts, according to the latest Beige Book released. Trade concerns and a lack of workers are also delaying projects, the report said.