Dow Jones Breaks 43,000, Palantir Hits New Record Highs: What's Driving Markets Wednesday?

U.S. stocks ticked higher at midday Wednesday, buoyed by signs of progress in U.S.-China trade negotiations and cooler-than-expected inflation data, both of which supported risk appetite.

President Donald Trump announced that a new trade agreement with China had been reached, pending final signatures from him and Chinese President Xi Jinping.

On the economic front, the Bureau of Labor Statistics reported that annual consumer inflation rose to 2.4% in May, slightly below the 2.5% forecast. Core inflation held steady at 2.8%, also coming in softer than expected.

The S&P 500 is aiming for a fourth consecutive gain, while the Dow Jones Industrial Average topped 43,000 — a level last seen on March 5.

Treasury yields fell across the curve, with the 10-year yield dropping five basis points to 4.43%. The U.S. dollar slipped 0.4% as the data reinforced expectations for two Fed rate cuts by year-end.

Gold edged up 0.2% to $3,330 an ounce, while platinum surged more than 5%. Crude oil jumped 3% to above $66.50 per barrel after Trump cast doubt on a potential nuclear deal with Iran, with the Tehran government threatening retaliation if talks fail.

Meanwhile, Bitcoin BTC/USD eased 0.7% to $109,500.

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF VOO flattened at $553.99.
• The SPDR Dow Jones Industrial Average DIA inched 0.2% up to $430.23.
• The tech-heavy Invesco QQQ Trust Series QQQ eased 0.1% to $533.50.
• The iShares Russell 2000 ETF IWM held steady at $214.42.
• The Health Care Select Sector SPDR Fund XLV outperformed, up 0.3%; the Materials Select Sector SPDR Fund XLB lagged, down 0.8%.

• Palantir Technologies Inc. PLTR rose 3.6% to a fresh record high of $137 on Wednesday after Mizuho analysts raised their price target on the defense software firm.
• Starbucks Corp. SBUX rallied 3.4% after Citigroup and RBC raised the price target to $95 and $100, respectively.
• Lockheed Martin Corp. LMT fell over 5% after reports surfaced that the U.S. Air Force plans to cut its F-35 fighter jet procurement by half.
• Oracle Corp. ORCL shares were up slightly and will report earnings after the close.

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