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US STOCKS EDGE HIGHER, CONFIDENCE WAVERS AS AI RALLY PAUSES

U.S. stocks ended Wednesday with slight gains, but it wasn’t a smooth ride. Trading was choppy as investors took a breather from the AI-driven rally that’s powered markets this year, while also keeping a close eye on developments in the Middle East.

Even with that cautious tone, the major indexes kept notching new milestones. The S&P 500 .SPX posted its 20th record close of 2026, while the Nasdaq .IXIC marked its 16th. The Dow .DJI added its 10th record finish for the year so far.

Across S&P 500 sectors, the picture was mixed. Consumer discretionary .SPLRCD, up nearly 2%, was the biggest gainer. Energy .SPNY, however, was the clear laggard. The sector fell around 1.5% with NYMEX crude futures CLc1 sliding over 4%. Tech .SPLRCT also lagged as the red-hot AI trade showed signs of cooling off.

Looking beneath the surface, transports .DJT stood out with strong performance, but not everything followed suit. Gold/silver miners .XAU, chip stocks .SOX, and banks .SPXBK, .KRX all ended the day lower.

The semiconductor space, in particular, took a pause, with the SOX index snapping a five-session winning streak. However, another pocket of the market remained in rally mode: space stocks. The Procure Space ETF UFO.O continued its surge, closing at a fresh record and extending its winning streak to five straight sessions.

All told, it was a day where markets kept climbing, but with a bit less conviction than we’ve been seeing lately.

Meanwhile, investors are gearing up for a heavy slate of economic data on Thursday including April personal income and spending, PCE, and durable goods, as well as the latest jobless claims, the second estimate of Q1 GDP, and April new home sales.

Here is a snapshot of where markets stood shortly after 4 p.m. EDT.

(Terence Gabriel)

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