On Wednesday, the S&P 500 and Nasdaq faced challenges in reversing their two-day losing streaks, with the S&P 500 briefly gaining 0.86% before closing lower. The decline in oil prices, with U.S. benchmark WTI crude dipping below $70 per barrel, has alleviated inflation worries, contributing to a drop in the 10-year Treasury yield by about 9 basis points.
This environment has favored travel, leisure, and housing stocks, with Home Depot's shares reaching their highest level since April. In the tech sector, stocks were mostly down, particularly in semiconductors and AI, as investors took profits ahead of Micron's earnings report. Notably, Corning's shares surged approximately 7%, standing out amidst the sector's weakness.
Linde's stock also gained traction after Citi raised its price target from $585 to $600, citing a favorable outlook for volume growth in North America and a strong backlog that could benefit from rising helium prices due to supply constraints. Linde's shares have increased over 21% year-to-date, significantly outperforming the S&P 500 and the materials sector.
Investors are keenly awaiting Micron's earnings report, especially after its impressive performance earlier this year, as well as upcoming earnings from McCormick and Darden Restaurants. Additionally, key economic data, including the PCE price index and GDP figures, will be released soon, which could further influence market sentiment