Markets edged higher Wednesday as investors grew more confident the Federal Reserve is done hiking for this cycle. Fresh comments from Fed Governor Christopher Waller — suggesting rate cuts could materialize by late 2026 if inflation data cooperates — gave bulls a reason to buy. The S&P 500 closed at 5,872, the Nasdaq at 19,145, and the Dow at 42,610, with tech leading the charge.
Nvidia was the standout story of the session, rallying 3.2% after a major sovereign wealth fund disclosed a significant new position in the chipmaker. The move underscored continued global appetite for AI infrastructure exposure, and dragged other semiconductor names — including AMD and Broadcom — higher alongside it.
On the downside, CVS Health tumbled 4.1% after slashing its full-year earnings outlook. Management flagged persistently elevated medical utilization rates and compressed pharmacy benefit margins, a combination that rattled the broader healthcare managed-care space. UnitedHealth and Cigna both softened in sympathy.
Gold held firm near $3,185 per ounce, reflecting lingering macro uncertainty even as equities climbed. Oil settled at $74.20 a barrel amid mixed demand signals from China. Overall, the tone was cautiously optimistic — VIX at 16.4 signals calm, but few investors are willing to bet aggressively ahead of Friday's PCE inflation print.