NEW YORK, New York - U.S. stocks were bought up on the Nasdaq Composite and Standard and Poor's 500 while the Dow Jones industrial index lost ground.

"The next leg higher will have to wait for policy initiatives that could provide tailwinds into 2026, including deregulation and a pro-growth tax bill," Daniel Skelly, head of wealth management market research and strategy at Morgan Stanley told CNBC Wednesday. "But for now, investors may want to lean toward buying dips rather than chasing rallies, focusing on quality stocks with achievable earnings estimates."

S&P 500 Edges Higher, Dow Dips

The benchmark Standard and Poor's 500 inched up 6.03 points, or 0.10 percent, to close at  5,892.58, supported by strength in the technology sector. Meanwhile, the Dow Jones Industrial Average fell 89.37 points, or 0.21 percent, to 42,051.06, dragged down by losses in industrial and financial stocks.

Nasdaq Outperforms on Tech Strength

The Nasdaq Composite surged 136.72 points, or 0.72 percent, to 19,146.81, marking its best daily performance this week. Mega-cap tech stocks led the charge as investors continued to favor growth-oriented names amid expectations of easing interest rates later this year.

Market Outlook

"While the Dow is seeing some profit-taking after its recent run, the Nasdaq's surge shows investors remain confident in the tech sector's earnings potential," said Mark Richardson, chief strategist at Wellington Capital.

Traders are now looking ahead to Thursday's economic data, including weekly jobless claims and housing starts, for further market direction.

U.S. Dollar Mixed in Foreign Exchange Markets as Yen Weakens, Swiss Franc Slips

The U.S. dollar showed a mixed performance in Wednesday's foreign exchange trading, gaining against some major currencies while retreating against others amid shifting economic sentiment.

Euro and Pound Lose Ground

The euro (EUR/USD) edged down 0.14 percent to 1.1168, reflecting lingering concerns over Eurozone growth.

The British pound (GBP/USD) fell 0.32 percent to 1.3259 as traders awaited signals from the Bank of England.

Yen Weakness Persists

The U.S. dollar (USD/JPY) declined 0.40 percent to 146.86 yen, though the yen remained near multi-year lows, keeping markets on alert for potential intervention by Japanese officials.

Dollar Firms Against Commodity Currencies

The Australian dollar (AUD/USD) dropped 0.64 percent to 0.6428, while the New Zealand dollar (NZD/USD) slid 0.65 percent to 0.5896, weighed down by subdued risk appetite.

The US dollar (USD/CAD) rose 0.29 percent to 1.3974, supported by softer oil prices.

Swiss Franc Eases

The US dollar (USD/CHF) advanced 0.54 percent to 0.8432, as the Swiss franc weakened modestly despite its typical safe-haven appeal.

Market Outlook

Traders attributed the U.S. dollar's uneven moves to uncertainty over the Federal Reserve's rate path, with focus shifting to upcoming US economic data.

"The dollar's performance hinges on inflation and labor market trends," noted Jane Carter of Horizon Capital. "Meanwhile, the yen's slide remains a flashpoint for policymakers."

Investors await Thursday's US jobless claims and producer price figures for fresh catalysts.

Global Markets Close Mixed Wednesday; Asia Outperforms While Europe Slips

Global stock markets delivered a mixed performance on Wednesday, with Asian indices leading gains while UK and European benchmarks mostly edged lower amid lingering economic uncertainty.

Canadian Market Rises

North of the border, Canada's S&P/TSX Composite gained 75.59 points, or 0.30 percent, to 25,692.45, lifted by gains in the energy and materials sectors as commodity prices firmed.

UK and European Markets Dip

The UK's FTSE 100 slipped 17.91 points, or 0.21 percent, to close at 8,585.01, weighed down by losses in energy and financial stocks.

Germany's DAX fell 111.55 points, or 0.47 percent, to 23,527.01, while France's CAC 40 dropped 37.04 points, or 0.47 percent, to 7,836.79.

The broader Euro Stoxx 50 declined 12.77 points, or 0.24 percent, to 5,403.44, and Belgium's BEL 20 lost 10.87 points, or 0.25 percent, settling at 4,387.62.

The Euronext 100 remained nearly flat, dipping just 0.02 points to 1,589.83.

Asian and Pacific Markets Rally

In contrast, Asian markets posted strong gains, led by Hong Kong's Hang Seng Index, which surged 532.38 points, or 2.30 percent, to 23,640.65.

Indonesia's IDX Composite jumped 147.08 points, or 2.15 percent, to 6,979.88, and Taiwan's TWSE Index climbed 452.73 points, or 2.12 percent, to 21,782.87.

South Korea's KOSPI rose 32.15 points, or 1.23 percent, to 2,640.57, while China's SSE Composite gained 29.08 points, or 0.86 percent, to 3,403.95.

Mixed Moves in Other Regions

Australia's S&P/ASX 200 edged up 10.60 points, or 0.13 percent, to 8,279.60, while the broader All Ordinaries added 9.50 points, or 0.11 percent, to 8,520.20.

In India the Sensex rose 182.34 points, or 0.22 percent, to 81,330.56.

However, Japan's Nikkei 225 bucked the regional trend, slipping 55.13 points, or 0.14 percent, to 38,128.13.

New Zealand's NZX 50 also dipped slightly, losing 7.48 points, or 0.06 percent, to 12,779.26.

Middle East and Africa Show Gains

Israel's TA-125 advanced 18.98 points, or 0.71 percent, to 2,683.73, while Egypt's EGX 30 rose 135.10 points, or 0.43 percent, to 31,827.90.

In South Africa the Top 40 USD Index gained 22.33 points, or 0.45 percent, to 5,006.04.

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