Wall Street Hovers Near Record As Marvell Surges/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. markets hovered near record highs Wednesday as mixed earnings results led to cautious trading. Marvell Technology shares jumped after strong AI-related profits, while Macy’s slipped despite beating expectations. Falling bond yields and weak jobs data fueled hopes of a Fed rate cut.
Wall Street Market Recap Quick Looks
- S&P 500 dips slightly, remains within 1% of all-time high
- Marvell Technology jumps 5.6% on strong earnings, $3.25B AI deal
- Macy’s falls 1.4% despite beating Q3 profit expectations
- American Eagle soars 14.5% on strong holiday demand
- CrowdStrike drops 2.4% after strong results but high expectations
- Capricor Therapeutics skyrockets 488% on promising drug trial results
- Bond yields fall on weaker-than-expected private job data
- Bitcoin rebounds past $92,000 after volatile month
- Asian markets mixed; Japan rallies, China slides on weak factory data
Deep Look: Wall Street Holds Steady Near Record Levels as Marvell Rallies, Macy’s Dips
NEW YORK (AP) — Wall Street showed minimal movement Wednesday morning, staying near historic highs amid a mix of corporate earnings and soft economic data. While Marvell Technology led tech stocks higher with a strong earnings report and a major acquisition, retail giant Macy’s stumbled despite surprising on profit.
Markets Near Peak, But Movement Muted
As of 9:35 a.m. Eastern, the S&P 500 slipped 0.1%, still hovering just shy of its record set in late October. The Dow Jones Industrial Average rose by 32 points (0.1%), while the Nasdaq Composite dipped 0.4% amid volatility in tech names.
The broader market is being driven by mixed earnings and economic signals, with investors awaiting clearer signs of future Federal Reserve policy moves.
Marvell Technology Surges on AI Momentum
Marvell Technology (MRVL) shares jumped 5.6% after reporting stronger-than-expected earnings and announcing a $3.25 billion acquisition of Celestial AI, a company specializing in next-generation artificial intelligence infrastructure.
CEO Matt Murphy credited robust demand in the data center space for the company’s Q3 performance. The deal reinforces Marvell’s pivot toward dominating the fast-growing AI market — a trend boosting semiconductor stocks across the board.
Retail Mixed: American Eagle Soars, Macy’s Slips
American Eagle Outfitters surged 14.5%, one of the S&P 500’s top performers, after delivering earnings that topped Wall Street forecasts. CEO Jay Schottenstein highlighted strong Thanksgiving weekend sales, noting accelerated demand across brands heading into the holidays.
In contrast, Macy’s declined 1.4% despite posting a quarterly profit — a sharp reversal from the loss analysts had expected. The dip is likely a result of profit-taking after Macy’s stock rallied over 34% year-to-date, far outpacing the S&P 500’s performance.
CrowdStrike and Capricor See Divergent Outcomes
CrowdStrike, the cybersecurity firm, fell 2.4% even after beating earnings estimates. Its sharp 51% year-to-date rally left investors expecting even stronger forward guidance, a reminder of how high-growth tech stocks can falter under the weight of lofty expectations.
Meanwhile, Capricor Therapeutics exploded by 488% after reporting promising data from a clinical trial for a Duchenne muscular dystrophy treatment. The biotech firm’s potential breakthrough sparked investor excitement in the health sector.
Bond Yields Fall After Weak Jobs Report
U.S. Treasury yields slipped following disappointing private payroll data from ADP, which indicated that employers may have shed more jobs in November than they added.
The 10-year Treasury yield dropped to 4.06% from 4.09%, a move that can ease borrowing costs across the economy and boost asset prices.
While the ADP report is not always a reliable predictor of the official jobs data, the weak reading reignites hopes that the Federal Reserve will cut interest rates at its next meeting, which would mark the third rate cut this year in response to slowing labor market conditions.
Bitcoin Recovers Past $92K
Bitcoin rebounded above $92,000, marking a significant recovery after a sharp drop last month when it briefly plunged below $81,000. Lower bond yields and renewed investor risk appetite have lifted the volatile cryptocurrency in recent sessions.
Global Markets Mixed
Asian markets closed with a mixed tone:
- Japan’s Nikkei 225 jumped 1.1% on strong gains in tech stocks, led by Tokyo Electron (+4.7%) and SoftBank Group (+6.4%), amid renewed interest in chipmakers.
- Chinese stocks declined, with the Hang Seng down 1.3% and Shanghai Composite off 0.5%, after fresh data revealed contracting factory activity, dampening growth sentiment.
European indexes hovered near flatline levels as investors remained cautious ahead of economic data releases and central bank updates.
You must Register or Login to post a comment.