S&P Snaps Win Streak

The S&P 500 erased modest gains earlier and closed in the red on Wednesday as the market’s comeback rally took a breather.

The Dow Jones Industrials sank 71.34 points to 33,874.24.

The S&P 500 lost 4.6 points to 4,241.84. Leading the losses were the S&P 500 utilities sector, which dropped 1.1% Wednesday, while consumer staples and materials also registered modest declines.

The NASDAQ climbed 18.47 points above Tuesday’s all-time record to 14,271.73.

Energy names including Exxon Mobil climbed as oil prices continued to rise. Brent crude topped $75 a barrel to hit a two-year high on Wednesday. Occidental Petroleum jumped more than 3%, while Devon Energy gained 2%.

Some major technology names gave the broader market some support. Tesla jumped 5.3%, while Netflix gained 0.8%. Facebook also rose 0.5%.

Despite Wednesday’s dip, the S&P 500 has risen 1.8% this week, bouncing back from a selloff last week triggered by the Federal Reserve’s surprise policy shift. The central bank projected much higher inflation for the year than previously, while signaling two rate increases as soon as 2023.

For June, the S&P 500 is up 0.9% and the NASDAQ isin the green 3.8%. The Dow, however, is in the red for the month amid weakness in Caterpillar and JPMorgan.

Fed Chairman Jerome Powell testified before the House of Representatives on Tuesday, which appeared to lift sentiment as he reiterated that inflation pressures will be temporary.

Prices for 10-Year Treasurys were lower, raising yields to 1.49% from Tuesday’s 1.47%. Treasury prices and yields move in opposite directions.

Oil prices picked up 44 cents to $73.29 U.S. a barrel.

Gold prices dipped $1.70 to $1,787.10 U.S. an ounce.