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The S&P 500 was relatively unchanged on Wednesday, while oil prices continued their rally amid a U.S. blockade of Iranian ports and after the Federal Reserve left its key interest rate unchanged. Traders also awaited quarterly earnings from four of the “Magnificent Seven.”
The Dow Jones Industrial Average cratered 280.25 points to 48,861.68.
The much broader index eked back 2.7 points to 7,136.10.
The tech-driven NASDAQ concluded a dipsy-doodle session up 9.44 points to 24,673.24.
Kevin Warsh, Trump’s nominated successor, appears on track to take over for Powell at the central bank. The market does not expect the Fed to make any adjustments to the current federal funds rate.
Oil prices rose for another day on Wednesday after The Wall Street Journal, citing U.S. officials, reported that President Donald Trump has told aides to prepare for an extended blockade of Iran.
Prices then took a leg higher after Axios reported that Trump has rejected Iran’s proposal to reopen the Strait of Hormuz and said that the U.S. naval blockade will stay in effect until a deal addressing concerns about the Middle Eastern country’s nuclear program is reached.
U.S. West Texas Intermediate futures gained 7% to trade above $106 per barrel. International benchmark Brent crude futures advanced 6% to trade above $118 a barrel.
On Wednesday, both Seagate Technology climbed 10% and NXP Semiconductors popped more than 26%, after posting earnings beats and sharing positive revenue guidance.
Investors have high expectations for these companies to show the revenue that will justify the capital they have spent on artificial intelligence investments.
Prices for the 10-year Treasury turned lower, pushing yields up to 4.41% from Tuesday’s 4.35%. Treasury prices and yields move in opposite directions.
Oil prices spiked $8.04 to $107.97 U.S. a barrel.
Gold prices swooned $47.10 to $4,561.30 U.S. an ounce.
