Wall Street ended mixed on Tuesday (Wednesday AEDT) as strong corporate earnings helped propel the Dow Jones Industrial Average to a record close, even as technology stocks retreated on renewed concerns over United States-China trade relations.
The Dow advanced 218.2 points, or 0.5%, to finish at 46,924.7, a new all-time high. The S&P 500 was nearly unchanged, adding just 0.2 points to 6,735.3, while the Nasdaq Composite fell 36.9 points, or 0.2%, to 22,953.7.
Coca-Cola and 3M were among the biggest drivers of the Dow’s gains after both companies delivered quarterly results that topped Wall Street expectations.
Shares of Coca-Cola climbed 4.1%, while 3M rallied 7.7% following stronger-than-expected earnings and upbeat outlooks.
General Motors also surged 14.9% after lifting its full-year guidance and reporting results that beat analyst forecasts.
The automaker said it expects to offset about 35% of the financial impact from President Donald Trump’s newly imposed tariffs.
However, technology stocks weighed on broader indexes after President Trump cast doubt on his upcoming meeting with Chinese President Xi Jinping, telling reporters, “Maybe it won’t happen.”
The remarks added uncertainty to the trade outlook, particularly for the semiconductor sector, which is highly exposed to tensions between Washington and Beijing.
Alphabet lost 2.4% and Broadcom slipped 1.9%, while Nvidia fell 0.8% as investors reduced exposure to tech ahead of critical earnings and geopolitical developments.
Market participants are watching a busy week for third-quarter earnings, with Netflix reporting results after Tuesday’s close and Tesla scheduled to release its figures on Wednesday.
Investor optimism has also been bolstered by growing expectations that the Federal Reserve will deliver another 25-basis-point rate cut at its late-October meeting.
Attention now turns to Friday’s consumer price index data, which could provide important clues on inflation trends and influence the Fed’s next move.
On the bond markets, Treasury yields eased, with the 10-year note falling 0.5% to 3.963% and the 2-year yield dipping 0.1% to 3.455%.
