Technology Stocks Propel S&P 500 to Record Highs Amid Mixed Economic Signals

The S&P 500 and Nasdaq climbed on Wednesday, driven by gains in technology stocks, despite sluggish labor market data. Meanwhile, leading banks saw declines, impacting the Dow. Economic data did little to shift Federal Reserve rate expectations, and geopolitical issues continue to draw investor attention.

The S&P 500 and Nasdaq experienced gains on Wednesday, spurred by a strong performance from technology stocks. Despite tepid labor market reports, investors showed resilience, pushing the benchmark index to record highs. Microsoft, Nvidia, and Broadcom were key contributors, with gains of 2% and 1.5% each, respectively.

On the downside, the banking sector faced setbacks following a previous rally, placing downward pressure on the Dow Jones Industrial Average. Major banks such as Bank of America and Goldman Sachs dropped 2.2% and 0.8% respectively, with JPMorgan Chase witnessing a significant dip of 2.5% due to a downgrade by Wolfe Research.

While labor market reports hinted at economic softness, they did not alter expectations regarding Federal Reserve rate cuts. Investors also focused on geopolitical tensions, with the U.S.'s actions against a Russian-flagged tanker and discussions regarding Greenland capturing market attention.

(With inputs from agencies.)