Wall St remained stoic after Federal Reserve Bank released the minutes of its June meeting suggesting plans to tackle portfolio reductions could move ahead within months.
However, there were no surprises and emphasis remains on a likely further rate increase this year. The Dow slipped -1.10 points or -0.01% to 21,478 as lacklustre energy stocks weigh on the index.
The S&P 500 rallied +3.53 points or 0.15% and Nasdaq bolted up 40.80 points or +0.67% as tech stocks regained momentum on both the Nvidia artificial-intelligence technology-partnership deal with Chinese internet company, Baidu, and a report from the Semiconductor Industry Association (SIA) showing a more than 20% growth in chip sales globally.
- Dow 21,478 -0.01%
- S&P 500 2,432 +0.15%
- Nasdaq 6,150.86 +0.67%
- Russell 2000 1,420 -0.46%
- NYSE Composite 11,809 -0.22%
- Gold 1,225.6 +0.52%
- Oil WTI $47.72 -3.79%
- 10-Year Treasury Yield 2.33% -0.02
Movers were across the big board with technology, financials, gold mining and airlines among the industry groups gaining. Intel climbed 2.63% and Microsoft went up +1.33%.
JPMorgan Chase also rose +1.00% as did Visa +0.71%.
Oil ended its latest rally with crude futures slumping 3.7% to $47.79 a barrel pushing energy stocks into laggard territory.
Slowing sales sends Automotive tumbling
Automobile sector were battered in Wednesday's trading falling -3.49%.
O'Reilly Automotive led the losers plunging 18% after it announced second quarter comparable store sales went up by just 1.7% far short of its guidance of 3% to 5% and would have an impact on its operating profitability.
This led other automobile companies down with Advanced Auto Parts sliding -11.15% and Autozone falling -9.60%.
Semiconductor growth amps up tech stocks
The 23% year-to-year growth in sales to $31.9bn experienced in the semiconductor industry is the largest seen since 2010 according to the SIA.
Sales, particularly memory products, were strong in every region with the US leading the way with a 30.5% increase followed by China with 21.3%.
The report certainly boosted shares in the industry as semiconductor producer, Advanced Micro Devices, led gainers which zoomed up 8.56% and Micron Technology also shot up to +4.70%.
Nvidia and Baidu collaboration
Nvidia bounced +2.67% on news of its partnership with Baidu to bring artificial intelligence technology to cloud computing, self-driving vehicles and AI home assistants.
NVIDIA and Baidu planned collaboration will align technical resources to create AI computing platforms for developers in academic research, startups creating breakthrough AI applications, and autonomous vehicles, according to Ian Buck, NVIDIA vice president and general manager of accelerated computing.