### Stock Markets Slip; Downgrade Hits GM and Ford; Gains for HPE

Major U.S. stock indexes faced losses on Wednesday afternoon, with both the S&P 500 and Dow Jones Industrial Average retreating from their recent record highs. The Dow dropped by 0.6% while the S&P 500 fell by 0.2%. The Nasdaq Composite also saw fractional declines.

This decline followed a positive Tuesday session, bolstered by a surge in Nvidia (NVDA) shares and widespread gains spurred by a significant stimulus package introduced by Chinese authorities. Nvidia continued its upward trend, climbing approximately 2% on Wednesday. Among other major tech stocks, Microsoft (MSFT) and Meta Platforms (META) advanced, while Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) experienced slight losses. Meanwhile, Micron (MU) shares rose by 1.5% ahead of its earnings report expected after the market closed.

Economic data was sparse on Wednesday, but key reports on the labor market and inflation are due later in the week, along with multiple speeches from Federal Reserve officials. Investors are keenly observing these economic indicators to gauge the economy's health and anticipate the Fed's moves on interest rates.

In the commodity markets, gold futures edged higher, nearing record levels at around $2,685 per ounce. Conversely, crude oil futures fell by over 2%, retracting gains from the previous session. Bitcoin saw a decline to about $63,300 after peaking above $64,500 overnight, its highest level since early August.

Shares of General Motors (GM) and Ford Motor (F) suffered notable declines following a downgrade by Morgan Stanley. The firm cited heightened competition from China, describing it as the "China Butterfly Effect." Morgan Stanley lowered GM's rating to "underweight" from "equal-weight," reducing its price target to $42 from $47. Ford's rating was cut from "overweight" to "equal-weight," with its price target dropped to $12 from $16. Despite the day's 5% decline, GM shares have risen over 25% year-to-date, whereas Ford shares, down 4% on Wednesday, have fallen nearly 15% in 2024.

Hewlett Packard Enterprise (HPE) saw a boost, with shares jumping 4.6% to $19.75 in afternoon trading. Barclays upgraded HPE to "overweight" from "equal weight" and increased the price target to $24 from $20, highlighting the company's strong position in the rapidly growing AI sector. This follows a similar upgrade from Bank of America the previous week, which emphasized HPE's potential leadership in AI adoption due to its extensive expertise in liquid cooling and supercomputing.

Visa (V) shares were down approximately 1% Wednesday, following a more than 5% drop the previous day after the U.S. Department of Justice filed an antitrust lawsuit against the payments giant. Investors are advised to monitor key price levels, particularly around $267, $263, and $254, and to watch the $290 area if the stock's uptrend resumes.