Technology stocks have regained their leading position. The Nasdaq Composite exhibited notable gains during Wednesday’s trading session, driven by the rising shares of Alphabet and Apple. Alphabet shares experienced a notable increase of 9.1% following Google’s successful navigation of potential antitrust penalties. A U.S. judge permitted the retention of both its Chrome browser and its collaboration with Apple. Both Bitcoin and gold experienced an increase in value.

Despite the gains observed on Wednesday, investors are preparing for increased volatility in September, a month that has historically demonstrated weak performance in stock-market returns. On Tuesday, both stocks and bonds experienced declines, as investors expressed concerns regarding inflation and the autonomy of the Federal Reserve.

“Due to September’s historically poor performance, it is the defensive sectors that have demonstrated the most resilience,” stated Sam Stovall, chief investment strategist at CFRA Research. In light of the fluctuations observed in the markets this week, he remarked, “We’ve seen at least a one-day turnaround in that rotation.”

U.S. oil producers’ shares exerted downward pressure on the S&P 500, experiencing a significant decline on Wednesday. This movement was driven by speculation regarding the potential decision of the Organization of the Petroleum Exporting Countries and its market allies to increase output, which could further intensify the existing global fuel surplus during their upcoming meeting this weekend.

The 30-year Treasury yield retraced after momentarily exceeding 5% early Wednesday, while the 10-year Treasury experienced a rally as well. The recent shifts can be attributed to a government report indicating an increase in private layoffs compared to the previous year, alongside remarks from a Federal Reserve official that highlighted “downside risks to the labor market.” In Europe, yields on longer-dated debt have stabilized following their peak levels, which were the highest observed in a decade or more on Tuesday.  Japan exhibited a significant underperformance, as bond prices continued to face downward pressure, resulting in elevated yields. Treasury Secretary Scott Bessent is set to begin interviewing candidates for the next Federal Reserve chair this Friday, as reported by sources with knowledge of the situation.

Macy’s shares experienced a notable increase of 21% following the department-store chain’s upward revision of its annual outlook. However, it anticipates that consumers will exhibit greater selectivity due to tariffs and other economic pressures in the latter half of the year. In the previous quarter, earnings per share for S&P 500 companies increased approximately 13% compared to the same period last year, based on LSEG data that incorporates projections for companies that have yet to disclose their results.

During trading on Wednesday:

• The yield on the 10-year Treasury declined to 4.211%, whereas the 30-year bond stood at 4.892%.
• The Dollar Index experienced a minor decline.
• The increase in gold persisted. Gold futures for September delivery increased by 1.2%, concluding at a historic $3,593.20 per troy ounce.
• Japanese and the majority of Asian stock indexes experienced declines, whereas European indexes saw an increase.
• Oil prices declined following a media report indicating that OPEC+ might consider increasing output once more during its meeting on Sunday.