Stocks Close Lower Wednesday: U.S. Markets End Session in the Red

U.S. stocks closed lower on Wednesday, with the Dow Jones Industrial Average falling around 202 points, or 0.5%. The S&P 500 and Nasdaq Composite also declined by 0.3% and 0.2%, respectively. The hawkish tone of the Federal Reserve’s latest meeting minutes affirmed a “higher for longer” approach, indicating that rate cuts are off the table. However, Chair Powell’s statement ruling out rate hikes caused the market to fluctuate based on other factors.

In the midst of the sell-off, the health-care sector stood out by bucking the trend. On the other hand, clean energy stocks surged, with First Solar hitting a 52-week high. The enthusiasm over AI and the growth of data centers led to a rally in solar stocks, with companies like SunPower, Nextracker, and Array seeing significant gains.

Nvidia’s earnings report after the bell was highly anticipated, with analysts expecting strong results. The chipmaker’s performance is crucial for the broader market, as it accounts for a significant portion of the S&P 500’s earnings growth. The options market implied a significant move for Nvidia’s stock post-earnings, with Goldman Sachs highlighting the importance of the report for the market.

Despite the overall market decline, some stocks made significant moves midday. Target shares fell over 7% after an earnings miss, while Analog Devices surged more than 8% on better-than-expected results. Shopify also climbed following an upgrade from Goldman Sachs.

In the commodities market, wheat futures hit their highest level since July, driven by concerns over harvests in Russia and Vietnam. European markets opened lower following fresh U.K. inflation data, with autos and oil and gas stocks leading the losses.

Overall, the market remains volatile, with investors closely watching key earnings reports like Nvidia’s to gauge the direction of the market in the coming days.