US Stock Market: Modest Gains Amid Anticipation of Inflation Report and Presidential Debate

Major U.S. stock indexes ended with modest gains after a choppy trading session on Wednesday. Investors remain cautious ahead of a key inflation report and a presidential debate. Leading tech stocks like Apple and Tesla posted gains, while economic data expected this week will influence future market moves.

Major U.S. stock indexes closed with modest gains on Wednesday after a choppy trading session, with investors holding their cards close to the vest ahead of a presidential debate and an inflation report closely watched by Federal Reserve policy makers.

"We're in this kind of holding pattern while we wait to see on Friday's personal consumption expenditure report to get more information," said Michael Green, portfolio manager at Simplify. Leading chipmaker Nvidia closed slightly up, while the the Philadelphia SE Semiconductor index dropped. Megacaps such as Apple, Amazon.com and Tesla also posted gains.

Several economic data releases are due this week, leading to Friday's release of the personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge used to decide on the path of monetary policy. The Fed has been projecting only one interest rate cut this year, in December. But investors see a 56.3% chance of a 25-basis point rate cut in September, and about two cuts by the year-end, LSEG's interest rate probabilities app showed.

According to preliminary data, the S&P 500 gained 8.89 points, or 0.16%, to end at 5,478.19 points, while the Nasdaq Composite gained 85.01 points, or 0.48%, to 17,802.66. The Dow Jones Industrial Average rose 17.43 points, or 0.04%, to 39,129.59. "Investors are sitting on their hands, waiting for tomorrow's presidential debate and for additional economic news in particular this Friday's PCE," said Sam Stovall, chief investment strategist at CFRA.

Positive earnings and benign inflation data could encourage more rotation from tech to sectors that have lagged this year, Ryan Detrick, chief market strategist at the Carson Group. Earlier this week, investors had increased bets on non-technology sectors.

"We're probably going to see this choppiness continue until there is a catalyst," said Brian Jacobsen, chief economist at Annex Wealth Management. Appliances manufacturer

Whirlpool surged after Reuters reported that German engineering group Robert Bosch is weighing a bid for the U.S. appliances maker.

FedEx jumped after the delivery giant forecast fiscal 2025 profit above estimates, boosting the Dow Jones Transport index to its highest in over a month. Apple rose after Rosenblatt upgraded the iPhone maker's stock to "buy" from "neutral". Tesla gained as Stifel initiated coverage with a buy rating.

Shares of Amazon Inc, bringing the company's market value above $2 trillion, the fifth U.S. corporation to cross that level. Shares of major U.S. banks including Morgan Stanley , Citigroup, and Bank of America slipped ahead of the Fed's release of results from its annual banking sector stress test.

The broader S&P 500 financial index fell. Rivian soared as German automaker Volkswagen said it will invest up to $5 billion in the U.S. electric-vehicle maker.

General Mills dipped after the Cheerios cereal maker forecast annual profit below estimates and posted a bigger-than-expected drop in quarterly sales.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)