The S&P 500 closed near its flatline Wednesday as interest rate fears dampened the enthusiasm stemming from a strong slate of corporate earnings.

The S&P 500 eked out a 0.02% gain to close at 5,071.63, while the Dow Jones Industrial Average fell 42.77 points, or 0.11%, to 38,460.92. The Nasdaq Composite edged 0.1% higher to finish the session at 15,712.75.

Treasury yields rose, pressuring stocks. At their highs of the day, the benchmark 10-year Treasury note yield topped 4.67%, while the rate on the 2-year note surpassed 4.95%.

"[One] negative [for equities] I have is the 10-year lifting up 70 basis points year to date, which is quite substantial," said Todd Morgan, founding member and chairman at Bel Air Investment Advisors. "And it needs to slow it down here because if it breaks, for seven days, it could go to 5%. That would be extremely negative [in the] short term for the market."

Those moves came ahead of the release of key U.S. economic data. First-quarter GDP numbers are due for release Thursday morning, while the core personal consumption expenditures price index — the Federal Reserve's inflation gauge — is due out Friday.

Investors have been fearful that inflation is not easing as quickly as anticipated, raising concern that the Fed may not cut interest rates.

Earnings

Tesla climbed 12% after the company announced a renewed push into "more affordable" electric vehicle models. However, the megacap tech name and retail investor favorite missed expectations on both lines in the latest quarter. Boeing turned lower after initially popping on first-quarter results. The aerospace giant ultimately closed lower by 2.9%.

Still, corporate earnings have so far surpassed Wall Street estimates. More than 25% of the names in the S&P 500 have reported earnings thus far. Of those companies, 79% have beaten earnings forecasts, FactSet data shows.

"Overall, these are all good signs," Ayako Yoshioka, senior portfolio manager at Wealth Enhancement Group, said of the first-quarter earnings season thus far. "I still think the focus remains on some of the larger names and markets will react to reports and outlooks out of Meta tonight, and Microsoft and Google tomorrow."

Stocks close near the flatline after a whipsaw session

Stocks closed little changed on Wednesday, with equities struggling to add to gains in recent days as Treasury yields climbed.

The S&P 500 inched 0.02% to close at 5,071.63, while the Nasdaq Composite added 0.1% to 15,712.75. The Dow Jones Industrial Average slipped 42.77 points, or 0.11%, to finish the session at 38,460.92.

— Brian Evans

This financial technology ETF could be on an upswing, Wolfe Research says

The Global X FinTech ETF (FINX) is clinging to year-to-date gains of less than 1%, but the stock's long-term chart looks promising, according to Wolfe Research.

"The FINX, Fintech ETF, has carved out a nice base over the past two years and is at an important juncture if it wishes to keep that setup intact," Wolfe technical analyst Rob Ginsberg wrote in a note to clients.

Additionally, most of the fund's top holdings have not reported earnings yet this cycle, providing potential catalysts in the coming weeks.

Read more about the fund on CNBC Pro.

— Jesse Pound

5 S&P 500 stocks hit new all-time highs

Though the S&P 500 wavered on Wednesday, the following five stocks in the index reached record highs during Wednesday's session:

• American Express
• Boston Scientific
• TransDigm
• Veralto
• Westinghouse Air Brake Technologies

Elsewhere, Bank of America, Charles Schwab, Synchrony Financial and Xylem all touched their highest prices in more than a year.

— Alex Harring, Christopher Hayes

Wells Fargo becomes bullish on Neurocrine Biosciences

Neurocrine Biosciences' drug pipeline is turning a corner and the company will be "knocking on the doors of the large-cap club" soon, according to Wells Fargo.

Analyst Mohit Bansal forecasts the company's congenital adrenal hyperplasia treatment, crinecerfont, will achieve $1.5 billion in peak sales, topping his prior $1.1 billion estimate.

"Crinecerfont alone is enough to make for a buy case," Bansal wrote in a Tuesday note. "We think [the] Crinecerfont [opportunity] is underappreciated as the Street is only giving credit for $500-$700M peak opportunity."

More about his call can be found here.

— Hakyung Kim

Stocks could have a strong end to 2024, says strategist Tony Dwyer

Canaccord Genuity chief market strategist Tony Dwyer told CNBC on Wednesday that he is still optimistic about the stock market in 2024 despite the recent swoon.

"Our game plan coming in to this year was to have some corrective action, based upon just a historic run we've had, and we're in the process in that. And I think once you work your way through that, it's going to set up for a really good ending to the year," Dwyer said on "Squawk on the Street."

Dwyer said broader earnings growth should help stocks, as well as the potential for multiple rate cuts this year. The market is currently becoming too pessimistic about rate cuts, he said.

"Just like 7 rate cuts at the end of December was excessive, only one rate cut may be as well," Dwyer said.

— Jesse Pound

Semi ETF on pace for best day in more than a month

The iShares Semiconductor ETF (SOXX) was on track for its best session in over one month.

Shortly after market open, the fund was up more than 3%. That put it on pace for its best day since March 7, when it gained about 3.4%.

The fund was helped by Wolfspeed, Texas Instruments, STMicroelectronics, ON Semiconductor and Analog Devices, which all climbed more than 5%.

Despite the advance, the exchange-traded fund is still down more than 7% in April.

— Alex Harring, Gina Francolla

Hasbro and Mattel shares soar after earnings reports highlight turnaround progress

Shares of toymakers Hasbro and Mattel were rallying Wednesday as turnaround efforts at both companies are taking hold. Cost cutting has been a key focus as sales at both companies remain under pressure.

Analysts continue to warn that Mattel will be up against tough comparisons in the second half of the year, when it comes face to face with the boost it received from the "Barbie" movie. Still, shares are rallying in trading on Wednesday, with a pop of more than 6%.

Bank of America analyst Alexander Perry touted the surprising strength in the Hot Wheels brand, which showed gross billings up 5% year over year in the quarter. Hot Wheels has benefited from a series of new efforts that include new product lines — including one targeted to adult collectors — and a Netflix series.

At Hasbro, a highlight was improving inventories and growth at its digital gaming segment. Hasbro's stock gained more than 12%. Its stock is up 27% year to date.

— Christina Cheddar Berk

Dow Industrials held back the most by Home Depot, McDonald's and J&J on Wednesday

Three stocks are combining to hold back the Dow Jones Industrial Average by a total of 60 points on Wednesday.

Home Depot is taking 26 points off the average, McDonald's is lowering it by 19 points and Johnson & Johnson by about 15 points.

Unlike the capitalization-weighted S&P 500, where larger companies have more of an effect on its calculation and smaller ones have less, the Dow Industrials has relied on individual company share prices since its founding in the 19th century. Today, each $1 move in any stock in the Dow Industrials moves the average higher or lower by 6.59 points.

— Scott Schnipper

Nasdaq opens higher

Technology stocks were higher shortly after the opening bell on Wednesday, helping lift the Nasdaq Composite for a third straight session.

The tech-heavy index climbed 0.57%, while the S&P 500 added 0.2%. The Dow Jones Industrial Average was the lone laggard, slipping 62 points, or 0.16%.

— Brian Evans

Durable goods orders increased 2.6% in March, meeting estimates

Orders for long-lasting goods increased a seasonally adjusted 2.6% in March, up sharply from the downwardly revised 0.7% gain in February and in line with the Dow Jones consensus estimate, the Commerce Department reported Wednesday.

New orders for items such as appliances, computers and aircraft rose for the second month in a row, but rose just 0.2% when excluding transportation, which jumped 7.7%. Nondefense aircraft and parts orders surged 30.6% on the month.

Durable goods orders increased 0.3% from a year ago, according to nonadjusted numbers.

— Jeff Cox

Stocks making the biggest moves premarket: Biogen, Tesla, Boeing and more

Check out the companies making headlines before the bell:

• Biogen — The stock rose more than 6% during premarket trading after the drugmaker posted earnings of $3.67 per share, beating the LSEG analyst estimates of $3.45 per share. The company cited its cost-cutting efforts and higher-than-expected sales of its Alzheimer's drug Leqembi.
• Airbnb — The vacation property rental platform added nearly 2% following an upgrade by Mizuho to buy from neutral. Mizuho noted several catalysts, including the potential launch of sponsored listings and incremental demand from the Summer Olympics. Its new price target of $200 suggests 24% upside.
• Tesla — Shares of the beaten-down electric vehicle maker jumped 12% in premarket trading after CEO Elon Musk said Tesla plans to start production of a new affordable EV model by early 2025. Tesla disappointed on first-quarter earnings, however.

For the full list, read here.

— Pia Singh

Boeing stock ticks up after first-quarter results surpass expectations

Shares of troubled aerospace firm Boeing climbed more than 2% in premarket trading after first-quarter results surpassed Wall Street expectations.

The company reported an adjusted loss of $1.13 per share on revenue of $16.57 billion. Analysts polled by LSEG had expected a wider adjusted loss per share of $1.76 and $16.23 billion in revenue.

— Brian Evans

European stocks open higher after FTSE notches another record close

European stocks opened slightly higher Wednesday, with the benchmark Stoxx 600 index up 0.2% by 8:50 a.m. London time.

The U.K.'s FTSE 100 climbed 0.4% after recording another record close Tuesday, while France's CAC 40 was 0.1% lower, and Germany's DAX was up 0.2%.

— Karen Gilchrist

Sensetime shares jump more than 20% after reported AI announcement

Shares of Chinese artificial intelligence company Sensetime Group spiked more than 20%, outperforming the Hang Seng Index's 1.04% gain.

While it was not immediately clear what prompted the rally, the company held a tech day on Tuesday during which it planned to announce "the latest breakthroughs in SenseTime's cutting-edge AI technology."

Chinese media reported that Sensetime unveiled its SenseNova 5.0 AI model. Chairman Xu Li reportedly claimed SenseNova was better than OpenAI's GPT 4 in the majority of general usage scenarios, especially in enterprise applications and Chinese-language usage scenes.

— Lim Hui Jie

Risk of yen intervention after Bank of Japan meeting this Friday: BofA

The Japanese yen could push past the 155 level against the U.S. dollar after the Bank of Japan's monetary policy meeting on Friday, according to a Bank of America note.

BofA analyst Shusuke Yamada wrote that the BOJ has already communicated that yen weakness could affect policy through its effect on inflation, but he thinks that a repeat of this communication would not be enough to support the yen.

Yamada said for the BOJ to support the yen, "it should acknowledge that policy has been too accommodative, that the next hike is as imminent as in June, and that the terminal rate would be higher than priced by the market."

However, he said that this is unlikely to be the case, which will push the yen beyond the 155 level and likely trigger an intervention, adding that if Japan does not intervene around that level, "the market may buy and bring USD/JPY to 160 quickly and test [its] resolve at that level."

— Lim Hui Jie

Grayscale unveils new filings for ether ETFs

Crypto investment firm Grayscale took the next step in the push for an ether exchange-traded fund on Tuesday.

The firm filed a Form S-3 with the U.S. Securities and Exchange Commission for the Grayscale Ethereum Trust (ETHE), part of the process of converting that fund into an ETF.

Grayscale also filed to create a Grayscale Ethereum Mini Trust, which would presumably have a lower management fee than the ETHE.

While the SEC gave a green light to bitcoin ETFs earlier this year, the regulator has not yet approved an ethereum ETF. Industry experts expect an update sometime next month, though many are skeptical of an approval.

Grayscale was a key part of the push to get a bitcoin ETF approved, including suing the SEC. The Grayscale Bitcoin Trust (GBTC) is the biggest bitcoin ETF, though it has suffered outflows since its conversion in January.

— Jesse Pound

Capital Economics sees Fed rate cuts possibly starting in September

"[G]rowth is strong; inflation on the Fed's preferred measure hasn't slowed as much as expected; and officials have probably been spooked by the concerns about the stickiness of inflation," wrote Capital Economics' group chief economist Neil Shearing on Monday. "It makes sense that the Fed will push back rate cuts to later this year: Absent an economic shock, there's no rush to cut."

The thinking at London-based Capital Economics is that it makes more sense for the European Central Bank and the Bank of England to loosen monetary policy before the U.S. "Growth in these economies is weaker, inflation is closer to target, and having chased the Fed up there's a risk that policy will become too tight as more households and firms refinance fixed rate debt."

Neither central bank has to wait for the Fed to go first, Shearing said. Both have moved independently of the Fed in prior economic cycles.

Markets are too pessimistic about interest rate policy in the back half of 2024 and in 2025, Capital Economics said. "Developments on the inflation front have muddied the waters, but we still expect the Fed, ECB and Bank of England to cut interest rates by more than markets are currently pricing in over the next 18 months. And we think the ECB and BoE will move in June — even if the Fed now waits until September to make its first move."  

— Scott Schnipper

S&P 500 Financials outperforming S&P 500 by 3 percentage points in 2024

Don't look now, but the S&P 500 Financials are outperforming the broad market, as measured by the S&P 500, by 9.3% to 6.3% so far in 2024. They are even beating the S&P 500 Tech Index's 6.1% gain this year.

"Banks Remain Strong Globally," trumpeted Tuesday morning's note to clients from Strategas Securities' technical and macro research team led by Chris Verrone. "Among the more impressive responses to the market's nascent oversold condition has come from the Financials, with the sector again pushing to fresh relative performance highs," Strategas said. "Some 25 Russell 1000 Financial constituents found their way onto [Monday's] 3-month relative high list, with the Capital Markets, Banks, and Consumer Finance names leading the push."

The 25 financial stocks at relative highs ranged from Bank of America with a market value of almost $300 billion, all the way down to SLM Corp., at about $5 billion.

Relative strength in financial stocks is not confined to the U.S. either. "Globally, the European and Japanese Banks have also retained their leadership advantage as the broader market has consolidated/corrected," Strategas said. ADRs in British bank Barclays, for example, are ahead 22.5% in 2024, topping even the 16.6% rally in S&P 500 Communication Services stocks.

— Scott Schnipper

See the stocks making big after-hours moves

Here are some of the names posting sizable moves in after-hours trading:

• Tesla — The electric vehicle maker rallied 8.2% despite missing expectations on both lines. Tesla shared its new initiative around offering an affordable model.
• Mattel — The toymaker jumped 2.4% after reporting narrower losses per share than Wall Street expected.
• Visa — The finance name rose 2.6% following its better-than-expected earnings report.

See the full list here.

— Alex Harring

S&P 500 futures are higher

S&P 500 futures traded up shortly after 6 p.m. ET.

Futures tied to the benchmark index added 0.2%, while Nasdaq 100 futures rose 0.4%.

Dow futures added just 7 points, trading marginally above the flatline.

— Alex Harring