S&P 500 bounces as it tries to shake off early second-quarter struggle: Live updates

Stocks rose on Wednesday as Wall Street attempted to move past the downward momentum felt at the start of the second quarter.

The S&P 500 added about 0.4%, while the Nasdaq Composite traded up by 0.5%. The Dow Jones Industrial Average advanced 86 points, or 0.2%, weighed down by Intel‘s 7.5% drop after the company reported operating losses in its semiconductor manufacturing business.

Artificial intelligence darling Nvidia swung into the green on Wednesday, helping broader market sentiment. Fellow mega-cap technology stocks Netflix and Meta climbed more than 1% each.

But higher rates still weighed on the market as they have since the second quarter began this week. ADP data released Wednesday showing private payrolls grew more than expected in March. It offered another sign of resiliency in the economy as investors grow increasingly concerned about the path of interest rate cuts from the Federal Reserve.

Fed officials also threw cold water on the possibility of rates coming down sooner rather than later. Atlanta Fed President Raphael Bostic told CNBC Wednesday morning he only sees one move lower this year, sometime in the fourth quarter. Fed Chair Jerome Powell said in the afternoon that the central bank needs more evidence of easing inflation before lowering the cost of borrowing money.

Traders see a 94% likelihood that rates remain unchanged at the Fed’s May policy meeting, according to the CME FedWatch Tool as of Wednesday afternoon. They’re anticipating a 62.5% probability of a cut at the June gathering, a significant decline from the 70.1% figure seen a week ago.

The rate on the U.S. Treasury 10-year note sat near flat on Wednesday after briefly touching its highest level since November. Oil prices surged to their most expensive prices going back to October.

Some market observers remain optimistic overall despite the rough start to the quarter, saying stocks are due for some consolidation. The first quarter, which concluded last week, was the best for the S&P 500 since 2019. But even with Wednesday’s rebound, the three major indexes remain down compared against the start of the week.

“The invincible stock market of the past five months is the exception, not the norm,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management.

“It’s certainly possible that the goldilocks narrative of high growth and falling inflation could return within a couple of months,” Ma said. “But it’s also possible to have choppier markets that take time to digest its recent gains and allow fundamentals to catch up with valuations.”