U.S. Stock Market Closes Mixed as Rate Fears Trigger Volatility Spike

Wednesday’s trading session delivered a tale of two markets: while the S&P 500 and Nasdaq inched higher, the Dow snapped its five-session winning streak with a 0.1% dip. Here’s what you need to know.

The Numbers

• Dow Jones: -0.1% (42.77 points) → 38,460.92
• S&P 500: +1 point → 5,071.63 (highest close since Apr 12)
• Nasdaq: +0.1% → 15,712.75 (highest since Apr 16)

Tech, consumer discretionary, and consumer staples led the charge, with XLK up 0.5%, XLY up 1%, and XLP up 0.8%. Eight of 11 S&P sectors closed green, but the fear gauge (VIX) spiked 1.78% to 15.97, signaling renewed anxiety.

What Spooked the Markets?

Treasury yields surged after a massive $70 billion five-year note auction. The 2-year yield climbed above 4.95%, while the benchmark 10-year jumped to 4.67%. Higher yields = higher borrowing costs = pressure on equities, especially growth and tech stocks. Layered on top: persistent chatter about when the Fed will finally cut rates, keeping investors on edge.

Earnings in Focus

Tesla stunned with a beat-and-miss: earnings of $0.45/share missed the $0.46 consensus, yet shares rallied 12.1% on news of accelerated cheaper vehicle launches (early 2025). Boeing reported a $1.13/share Q1 loss—narrower than feared—but stock tumbled 2.9%. Biogen impressed, posting $3.67/share earnings vs. $3.45 expected, driving a 4.6% pop.

All eyes now on Microsoft and Alphabet for earnings later this week.

Economic Pulse

Durable goods orders grew 2.6%, matching expectations—a sign the economy’s holding steady despite rate uncertainty.