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TECH DRAGS S&P 500, NASDAQ LOWER...AGAIN

Wall Street meandered its way through an up-and-down session on Wednesday as investors continued to ponder deep thoughts regarding AI expenditures and related debt issuance, a bullish-looking Fed pivot, and the battle of wits taking place around Middle East negotiating tables.

The Dow Jones Industrial Average .DJI rose 184.03 points, or 0.36%, to 51,850.87, the S&P 500 .SPX lost 7.02 points, or 0.10%, to 7,358.44 and the Nasdaq Composite .IXIC lost 110.40 points, or 0.43%, to 25,476.64.

Tech shares .SPLRCT weakened as the session progressed, paring losses a bit in the closing minutes. On June 10, the sector confirmed it entered a correction on June 2, the date of its last record closing high. On Wednesday, it closed 9.3% below that level.

Kevin Warsh's first monetary policy meeting as Chair of the Federal Reserve left markets pondering the possibility that rate hikes are in the cards, even as megacap tech names turn to debt markets to finance their exorbitant AI infrastructure outlays, which in turn has curbed investor enthusiasm for the nascent technology.

Chip stocks .SOX lost 0.2% and Micron shares MU.O shed 0.4% ahead of the latter's quarterly earnings report, well off session lows.

Housing data today showed new single-family home sales dropped unexpectedly, weighed down by high borrowing costs, dampening hopes for recovery for the beleaguered sector.

Those hopes were doused further after U.S. President Trump pulled a surprise U-turn and refused to sign the ROAD act, a bipartisan bill that would have restricted corporate investment in single-family homes and bolstered the pre-fab/modular housing industry in an effort to make home ownership more affordable.

After the closing bell, the Federal Reserve released the results of its annual "stress test," and found that 32 of the nation's largest banks are well positioned to weather a severe economic downturn.

Tomorrow, our ambidextrous Commerce Department will release its May PCE report, its third and final first-quarter GDP data and new orders for durable goods.

The PCE (Personal Consumption Expenditures) is expected to show a 0.4% monthly gain in personal income, a 0.6% monthly rise in consumer spending (hinting at further diminished savings). Analysts also project year-on-year headline and core price growth of 4.1% and 3.4%, respectively, well above the Fed's 2% annual inflation target.

GDP is seen holding at 1.6%, while new orders for durable goods are expected to have dropped 4.5% last month.

Here's your closing snapshot:

(Stephen Culp)

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EARLIER ON LIVE MARKETS:

VOLATILE US INFLATION CLOUDS OUTLOOK FOR MARKETS, INVESTORS SAY CLICK HERE

HOMING SIGNALS: NEW HOME SALES, MORTGAGE DEMAND, THE ROAD TO HOUSING ACT CLICK HERE

UK'S LAGGARDS EYE LIFELINE ON HOPES OF FISCAL RESET CLICK HERE

WALL STREET MIXED EARLY; CONSUMER DISCRETIONARY LEADS S&P 500 CLICK HERE

US STOCK FUTURES EDGE UP; BALL'S IN YOUR COURT, MICRON CLICK HERE

SURGING HYPERSCALER CAPEX SPARKS SHARE BUYBACK SHIFT CLICK HERE

UK BANKS: HOT RUN, COLD VALUATIONS CLICK HERE

"MATERIAL" EQUITY OUTFLOWS FROM PENSION FUND REBALANCING EXPECTED AT QUARTER-END CLICK HERE

STOXX STEADY; RHEINMETALL TUMBLES, SEGRO BOOST REAL ESTATE CLICK HERE

BEFORE THE BELL: EUROPE SOFT AHEAD OF MICRON AFTER TECH ROUT CLICK HERE

TIME TO CASH IN YOUR CHIPS? CLICK HERE