Small-cap and blue-chip stocks advanced in Wednesday morning trading on Wall Street, while technology names lagged and the S&P 500 hovered near record levels as investors braced for the Federal Reserve's interest rate decision.
The Federal Open Market Committee will announce its policy move at 2:00 p.m. ET, with markets fully pricing in a 25-basis-point cut that would lower the federal funds rate to a 4.00%-4.25% range. Alongside the decision, the Fed will release fresh quarterly projections outlining policymakers' views on growth, inflation, the labor market, and the likely path of rates.
At 6,600, the S&P 500 remained steady near all-time highs. Yet history offers a cautionary note: over the past 25 years, the index has typically dipped modestly in the 30 days following a rate cut, reflecting the fact that investors tend to anticipate such moves well in advance.
AI-linked leaders bore the brunt of Wednesday's selling. Nvidia Corp. (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO), and Palantir Technologies Inc. (NASDAQ:PLTR) each dropped more than 3% after reports that China had barred domestic firms from buying Nvidia's AI chips.
By contrast, small caps rallied, with the Russell 2000 jumping 1% to its highest level since early December 2024.
In commodities, gold slipped 0.1% to $3,685 an ounce after touching a record $3,700 on Tuesday. Silver fell 1.2% to $42, while oil edged 0.3% lower to $64.30 a barrel. Bitcoin (CRYPTO: BTC) retreated 1% to $115,580.
Wednesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day % chg |
| • Russell 2000 | 2,423.51 | 1.0% |
| • Dow Jones | 46,056.30 | 0.7% |
| • S&P 500 | 6,603.48 | 0.0% |
| • Nasdaq 100 | 24,171.30 | -0.4% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) slipped 0.2% to $605.71.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.6% to $461.32.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) eased 0.5% to $588.30.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 1% to $240.54.
- The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) outperformed, up 1%; the Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 0.7%.
S&P 500’s Top 5 Gainers On Wednesday
| Stock | % Change |
|---|---|
| Workday Inc. (NASDAQ:WDAY) | +7.16% |
| Charter Communications Inc. (NASDAQ:CHTR) | +4.44% |
| Fox Corp. (NASDAQ:FOX) | +3.23% |
| Dollar Tree Inc. (NASDAQ:DLTR) | +2.96% |
| First Solar Inc. (NASDAQ:FSLR) | +2.84% |
S&P 500’s Top 5 Losers On Wednesday
| Stock | % Change |
|---|---|
| Uber Technologies Inc. (NYSE:UBER) | -4.97% |
| Broadcom Inc. | -3.99% |
| Palantir Technologies Inc. | -3.33% |
| Insulet Corp. (NASDAQ:PODD) | -3.10% |
| NVIDIA Corp. | -2.90% |
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