S&P 500 Climbs While Dow Drops; Tech Stocks Benefit from Tariff Easing

On Wednesday, the U.S. stock markets displayed mixed outcomes as investors maintained the momentum from a rally sparked by decreasing trade conflicts between the U.S. and China.

The S&P 500 saw a slight increase of 0.1%, the Nasdaq gained 0.57%, while the Dow Jones Industrial Average experienced a drop of 0.21%.

Gains were predominantly driven by technology stocks, with Nvidia climbing over 3% after announcing plans to deliver 18,000 AI chips to Saudi Arabia. Similarly, AMD rose more than 4% following a $6 billion share repurchase announcement. Over the course of the week, the Nasdaq has surged more than 6%, with the S&P 500 and Dow rising 4% and 1%, respectively.

Favorable Developments from China

Investors responded positively to a recent agreement between the U.S. and China aimed at temporarily lowering tariffs.

The U.S. has decreased tariffs on Chinese goods to 30%, while China has reduced duties on U.S. imports to 10%. The S&P 500, which was previously negative this year, has now risen over 21% since its low in April.

Nonetheless, analysts caution that the rally may lose steam without further policy actions. “The next leg higher will depend on policy initiatives that could sustain momentum until 2026,” stated Daniel Skelly of Morgan Stanley, according to CNBC.

In individual stock news, eToro surged nearly 29% upon its debut on Nasdaq. Super Micro Computer climbed 17%, benefitting from prior gains linked to a $20 billion data center deal in Saudi Arabia. Boeing’s shares rose 2% after announcing a significant $96 billion aircraft sale to Qatar Airways.

Conversely, Tesla’s recent climb seems to be showing signs of overheating, as S3 Partners reported technical indicators pointing to potential short-term price pressure.