S&P 500 hits record highs and Nasdaq 100 tops 20,000 ahead of key economic data: What's driving markets on Wednesday? – SPDR Dow Jones Industrial Average ETF (ARCA:DIA)

The S&P 500 hit a record high during morning trading in New York on Wednesday, while the tech-heavy Nasdaq 100 surpassed the 20,000 mark, a level last seen on July 17.

Semiconductor stocks outperformed, driven by anticipation of Micron Technology Inc..'s IN earnings report, which will be released after the market closes on Wednesday.

However, Wall Street saw a sideways performance across the major indices as investors cautiously digested positive Chinese stimulus news, which boosted market sentiment on Tuesday, and looked ahead to upcoming economic data.

On Thursday, investors will focus on the final report on second-quarter gross domestic product. The second estimate already showed that the U.S. economy grew at a solid 3% pace during the quarter ending in June.

Weekly jobless claims will also be closely watched, especially after the Conference Board's latest Consumer Confidence Index revealed growing concerns about the labor market among U.S. households.

The personal consumption expenditures price index for August, the Federal Reserve's preferred gauge of inflation, is due out on Friday. This data could provide key clues about rate cut expectations in November.

The U.S. dollar index edged higher on Wednesday, supported by a slight rise in Treasury yields. Oil prices fell 1% but pared larger losses after a larger-than-expected draw in crude oil inventories suggested demand remains strong.

In the crypto space, Bitcoin BTC/USD fell 0.8%, retreating from an intraday high of $64,800, its highest level since late July.

Wednesday's performance of major US indices and ETFs

According Benzinga Pro data:

• He SPDR S&P 500 ETF Trust SPY stabilized at $570.76.
• He SPDR Dow Jones Industrial Average THERE stabilized at $420.90.
• Heavy technology Invesco QQQ Trust Series QQQ rose 0.2% to $486.27.
• He iShares Russell 2000 ETF MMI fell to $219.22.
• He Technology Selected Sector SPDR Fund XLK exceeded expectations, rising 0.4%. Energy Selected Sector SPDR Fund XLE lagged behind, down 0.9%.

Wednesday's stock market moves

• Duolingo Inc. by rose 6% after Evercore ISI raised its price target from $270 to $335.
• Company: Fortrea Holdings Inc. FTRE fell nearly 10% after Jefferies downgraded the stock to Hold from Buy.
• Vistra Corp. VST rose nearly 5% after Jefferies raised the price target from $99 to $137.
• Ford Motor Co.. and General Motors Company. fell 4.4% and 5% respectively after receiving a rating downgrade from Morgan Stanley.
• Company Hewlett Packard Enterprise Energy Efficiency rose 4.9% after Barclays upgraded the stock from Equalweight to Overweight, raising the price target from $20 to $24.
• Companies reporting earnings after the close include Micron Technology Inc and Jefferies Financial Group Inc. JEF.

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