On Wednesday Eastern Time, driven by the strong gains of Tesla and Amazon, the three major US stock indexes collectively closed higher, but experienced several fluctuations throughout the day. Investors remained anxious before the US presidential election debate and the release of the heavyweight inflation report.

The three major indexes had all fallen in the early trading session, but fortunately, most of the large technology stocks performed positively, with Amazon and Tesla shining brightly, and Nvidia not experiencing a sharp decline. In the end, they also recovered all the losses (2.4%).

Investors continue to pay attention to the May Personal Consumer Expenditure Price Index (PCE) released on Friday, which is the most favored inflation indicator by the Federal Reserve.

The Federal Reserve predicts that it will only cut interest rates once this year in December, but investors believe that the possibility of a 25 basis point rate cut in September is 56.3%, and there will be two rate cuts by the end of the year.

Ryan Detrick, Chief Market Strategist at Carson Group, stated that investors are watching and positive corporate profits and mild inflation data may encourage more funds to shift from technology stocks to underperforming sectors.

Earlier this week, investors increased their bets on non tech stocks. David Bahnsen, Chief Investment Officer of Bason Group, stated that large technology stocks are facing liquidation and adjustment because the "excitement" of a small portion of technology stocks in recent weeks and months is absurd. He stated that information technology and communication services stocks currently account for nearly half of the market value of the S&P 500 index, which is worrying and certainly unsustainable.

UBS Global Wealth Management analysts believe that although Nvidia's volatility has disrupted market sentiment, the structural investment rationale for artificial intelligence (AI) has not changed. Therefore, they hold a constructive view on the overall stock market and the fundamentals remain stable.

Market dynamics

As of the close, the Dow Jones Industrial Average rose 15.64 points, or 0.04%, to 39127.80 points; The Nasdaq rose 87.50 points, or 0.49%, to 17805.16 points; The S&P 500 index rose 8.60 points, or 0.16%, to 5477.90 points.

Most of the 11 sectors in the S&P 500 index closed lower, with the energy sector down 0.86%, the finance sector down 0.47%, the telecommunications services sector up 0.1%, the information technology/technology sector up 0.37%, and the optional consumer sector up 1.98%.

The US stock industry's ETFs closed mixed, with optional consumer ETFs up 1.45%, internet stock index ETFs up 0.45%, regional bank ETFs up 0.43%, biotechnology index ETFs down 1.15%, energy industry ETFs down 0.98%, financial industry ETFs down 0.63%, global aviation ETFs down 0.51%, and utility ETFs down 0.42%.

Popular stock performance

Most popular technology stocks rose, with Tesla up nearly 5%, Apple up 2%, Netflix up 0.79%, Meta up 0.49%, Google A down about 0.1%, Microsoft up 0.27%, and Nvidia up 0.25%.

The stock price of e-commerce and cloud computing giant Amazon rose to a record high, closing up 3.9%, bringing its market value above $2 trillion for the first time. Google A broke through this milestone in April, while Nvidia, Microsoft, and Apple currently have market capitalization exceeding $3 trillion.

The stock price of vaccine manufacturer Modena plummeted more than 11%, marking its largest daily decline since February 2022, as the company's respiratory syncytial virus (RSV) vaccine efficacy sharply declined, far behind competitors Pfizer and GlaxoSmithKline.

Whirlpool, a home appliance manufacturer, saw its stock price rise 17.1% after reports that German engineering group Robert Bosch is considering acquiring the company.

FedEx surged 15.5%, with the company's profits and performance guidance exceeding expectations, and multiple investment banks giving a buy rating.

Prior to the release of the annual banking stress test results by the Federal Reserve, major banking stocks including Morgan Stanley, Citigroup, and Bank of America all experienced declines.

Rivian surged 23.24% as Volkswagen and Rivian announced a joint venture to jointly develop the electronic/electrical architecture for the next generation of electric vehicles.

Popular Chinese concept stocks fluctuated, with the Nasdaq China Golden Dragon Index rising 0.43%. NIO rose more than 6%, Xiaopeng Motors and NetEase rose more than 3%, Ideal Motors rose more than 2%, Alibaba, Vipshop, and Tencent Music rose slightly. Bilibili fell more than 4%, while iQiyi fell more than 3%.