U.S. stock markets closed higher on Wednesday posting back-to-back closing in green. Market participants regained confidence on risky assets like equities as global trade war related concerns reduced to some extent. Investors also assessed a series of mixed economic data. All three major stock indexes ended in positive territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.7% or 317.24 points to close at 44,873.28 after a choppy session. At intraday low, the blue-chip index was down more than 203 points. Notably, 19 components of the 30-stock index ended in positive territory while 11 in negative zone. 

The tech-heavy Nasdaq Composite finished at 19,692.33 advancing 0.2% due to mixed performance by technology behemoths. At intraday low, the tech-laden index was down more than 155 points.

The major gainer of the index was GRAIL Inc. GRAL. The stock price of this small-cap biotech firm soared 21.6%. GRAIL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The S&P 500 appreciated 0.4% to finish at 6,061.48. At intraday low, Wall Street’s benchmark was down more than 0.5%. Eight out of 11 broad sectors of the broad-market index ended in positive territory, three in negative zone. 

The Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK), the Health Care Select Sector SPDR (XLV), the Real Estate Select Sector SPDR (XLRE) and the Utilities Select Sector SPDR (XLU) were up 1.1%, 1%, 1.4%, 1.6% and 1%, respectively. 

The fear-gauge CBOE Volatility Index (VIX) was down 8.4% to 15.77. A total of 13.85 billion shares were traded on Wednesday, lower than the last 20-session average of 15.32 billion. Advancers outnumbered decliners on the NYSE by a 2.74-to-1 ratio. On Nasdaq, a 2.06-to-1 ratio favored advancing issues. 

Economic Data

ADP reported that private sector payrolls in January increased 183,000 jobs, higher than 176,000 jobs of December. All jobs were created by services sector adding 190,000 manpower. On the other hand, the good producers retrenched 6,000 workers. Pay for workers who stayed in their jobs grew at a 4.7% annual rate in January, marking 0.1% more than in December.

The Institute of Supply Management reported that services PMI (purchasing managers’ index) for January came in at 52.8%, missing the consensus estimate of 54.3%. The metric for December was revised marginally downward to 54% from 54.1% reported earlier. Any reading above 50% indicates expansion of services activities. 

New orders index fell to 51.3% in January from 54.4% in December. Prices index (prices paid for services inputs) dropped to 60.4% in January from 64.4% in December, which was the highest reading since February 2023. 

The S&P Global US Services PMI Business Activity Index came in at 52.9% in January, well below December’s reading of 56.8%. Nevertheless, any reading above 50% indicates expansion of services activities. Business confidence also reduced marginally in January. However, service providers looked to expand capacity at the start of 2025 and ramped up hiring accordingly.

The Department of Commerce reported that trade deficit increased to $98.4 billion in December, reflecting the highest level in nearly three years. The consensus estimate was $96.8 billion. The metric for November was revised upward to $78.9 billion from $78.2 billion reported earlier.

For the week ended Jan 31, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 8.7 million barrels from the previous week. He metric for previous week (ended Jan 24) was 3.5 million barrels.

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