S&P, Nasdaq hit new closing highs on rate cut hopes

The benchmark S&P 500 and Nasdaq indexes hit new closing highs for the second straight day on Wednesday on hopes that the US Federal Reserve was getting close toa monetary easing cycle.

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But the market reflected weakness in some technology stocks after the previous day’s strong gains.

Signs that US tariffs on imports have not fully filtered into headline consumer prices came as a relief for investors this week as they seek insight on the impact of trade uncertainty on the economy.

Some large technology stocks including Nvidia, Alphabet and Microsoft — among the so-called Magnificent Seven stocks — closed lower as investors searched for new growth drivers.

“Valuations are elevated. I do think, though, at the end of the day, the key will be the delivery of earnings, and that’s what we're seeing,” said Katherine Bordlemay, co-head of client portfolio management, fundamental equities at Goldman Sachs Asset Management.