Nasdaq continues record-breaking streak

US stock markets recovered from the previous session's decline, during which nearly three-quarters of listed companies fell. Prices rose by nearly 70% on Wednesday. The highlight of the day was the market turmoil triggered by media reports that appeared before the session's halfway point. They concerned Donald Trump's Tuesday meeting in the Oval Office with Republican members of Congress, during which he was reportedly prepared to dismiss the Fed chairman if he received their support. The news caused a price crash, but it was short-lived, as the president quickly responded by announcing that it was "very unlikely" he would dismiss Jerome Powell anytime soon and that he "has no plans to do so."

Before the sentiment swings triggered by the aforementioned news, the stock market was dominated by small price movements. The quarterly results released before the market opened were relatively good, but they failed to significantly improve the sentiment surrounding the industry. Its KBW index rose only 0.3% after recording its largest decline in eight weeks the day before. Johnson & Johnson (6.2%), on the other hand, was the growth driver for the healthcare segment and the most expensive component of the Dow Jones Industrial Average. The pharmaceutical giant reported better-than-expected quarterly results and additionally raised its annual forecasts for several parameters, including adjusted profit.

US bond prices rose. Yields on 30-year bonds remained above 5%, although they had dipped below that level in the first part of the session, before the market crash. Producer price data for June, released before the session, showed a larger-than-expected decline in inflation, somewhat alleviating concerns raised by Tuesday's CPI report. Industrial production data for June, released on Wednesday, also proved better than expected. The Fed's "beige book" also signaled a slight increase in economic activity.

Nearly 70% of S&P 500 companies closed higher. Demand prevailed in eight of the index's 11 main segments. The biggest gains were seen in healthcare (1.2%), real estate (1.1%), and financials (0.7%). Energy (-0.85%), telecommunications services (-0.15%), and consumer discretionary (-0.02%) companies.

Nineteen of the 30 companies in the Dow Jones Industrial Average rose. Besides Johnson & Johnson (6.2%), the biggest gainers were Amgen (2.2%) and Caterpillar (2.0%). The biggest declines were recorded by Amazon.com (-1.4%), Chevron (-0.5%), and Home Depot (-0.4%).

Nearly two-thirds of the nearly 3,300 companies on the Nasdaq Composite ended the session with gains. Among the most valuable companies, the number of gainers was similar to the number of decliners. Among the latter was Netflix (-0.8%), which will release its quarterly results on Thursday. Nvidia (0.4%), which will be able to export H20 chips to China, closed the session with a record price. Among the "Magnificent Seven" companies, Tesla (3.5%) was the most expensive on Wednesday. The company's shares rose following reports of plans to offer a new, six-seater version of the Model Y in China. News that Cathie Wood's ARK Invest was buying shares of Elon Musk's company on bearish prices also helped.