Stocks and Metals Fall as Traders Turn Cautious Ahead of Fed Minutes and Nvidia Earnings; First Solar Hits Record Highs: What's Driving Markets Wednesday

Wall Street cautious ahead of Fed meeting and Nvidia earnings. Nasdaq up, small caps down. Solar and clean energy industries surge.

Wall Street had a quiet morning on Wednesday as traders approached the day with caution in anticipation of the Federal Reserve meeting minutes release and Nvidia Corp. earnings announcement later in the day. The Nasdaq 100 showed a slight gain of 0.2%, surpassing other major indices, while the S&P 500 and the Dow were in negative territory by midday.

Small caps, represented by the iShares Russell 2000 ETF, saw a decline of 0.4% during the session. However, the solar and clean energy industries experienced significant gains. The Invesco Solar ETF surged nearly 9%, and the Invesco WilderHill Clean Energy ETF jumped 5%, possibly due to recent trade tariff adjustments on solar manufacturing equipment by the United States Trade Representative.

First Solar Inc. soared 16% to reach all-time highs, marking its best session gains in over a year. Treasury yields remained stable, and the U.S. dollar index strengthened by 0.2%, with traders predicting a 42-basis-point reduction in Federal Reserve rates by the end of the year.

In the commodities market, metals such as gold, silver, and copper saw declines of 1.2%, 2%, and 4.9%, respectively. Copper, in particular, was affected by reports of high inventories in China. Natural gas prices rose by over 4%, while oil prices dipped by 0.6%. Bitcoin remained steady at $70,400 in the cryptocurrency market.

The SPDR S&P 500 ETF Trust, the SPDR Dow Jones Industrial Average, and the Invesco QQQ Trust showed slight fluctuations in their prices. The Technology Select Sector SPDR Fund outperformed with a 0.5% increase, while the Energy Select Sector SPDR Fund dropped by 1.8%, possibly due to news of the Biden administration releasing gasoline from strategic reserves.

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