EDITOR'S NOTE

The S&P 500 and Nasdaq Composite hit new records Wednesday as investors await the Federal Reserve’s annual Jackson Hole economic policy symposium, which will be virtual for the second year.

The Dow Jones Industrial Average rose 39.24 points, closing at 35,405.50. The S&P 500 climbed 0.2%, crossing the 4,500 mark for the first time during the day. The broad market index ended the trading session at 4,496.19. The Nasdaq Composite closed at 15,041.86, reflecting a gain of 0.1%.

Chip stocks helped lift the S&P 500. Early in the day, news broke that Nvidia would supply chips for the Department of Energy’s supercomputer, which pushed the stock up 1.9%. Western Digital jumped 7.8% following a report by The Wall Street Journal, which said the company is in advanced talks to merge with Japanese chipmaker Kioxia Holdings. Micron Technology edged 2.8% higher.

Bond yields ticked up, with the yield on the benchmark 10-year Treasury note rising as high as 1.352%. Bank stocks ticked up, too. JPMorgan Chase rose 2%, and Wells Fargo gained 1.9%. Banks are typically viewed as cyclical stocks whose performance is tied to the path of the economy.

Travel and leisure stocks also leapt as investors search for clues that suggest delta variant cases could be peaking. United Airlines added 1%, while Caesars Entertainment rose 4% and MGM Resorts climbed 2.9%.

Johnson & Johnson’s stock dipped slightly, despite reporting its Covid vaccine booster shot showed promising results in early stage clinical trials. Delta Air Lines said it would raise health insurance premiums for unvaccinated employees to cover higher coronavirus costs. The company has about 75,000 employees, and roughly 75% of them are fully vaccinated.

Fed Chairman Jerome Powell is scheduled to give a speech at the central bank's economic symposium at 10 a.m. ET Friday. Investors will be listening for details about when the Fed plans to pare back its $120 billion a month bond-buying program.

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