Investing.com -- U.S. stocks were mixed on Wednesday in spite of a late rally, as a high-ranking Federal Reserve official cautioned that the currency interventions by the People's Bank of China this week could have widespread ramifications on the global economy.
During a luncheon address at the Rochester Business Alliance in Western New York, Federal Reserve of New York president William Dudley indicated that the PBOC's 1.9% devaluation of the Yuan might have "huge implications," on economic growth worldwide while emphasizing it is still "very early to judge the full impact" of the monetary policy decision. On Wednesday, the Chinese central bank lowered the value of the renminbi for the second straight day before propping up the currency late in the session when it fell to a four-year low against the dollar.
The Dow Jones Industrial Average rallied late in the session, as Apple Inc (NASDAQ:AAPL) pared significant losses but turned back negative just before the close. The tech giant is easily susceptible to major policy changes in China, as iPhone and laptop sales continue to soar in the world's second largest economy. At one point, Apple shares (NASDAQ:AAPL) fell by as much as 3.4% before ending the day up 1.56% at 115.26. The Dow wound up closing down by less than one point, ending Wednesday's session 0.33 points lower at 17,402.51. Apple's rebound boosted the NASDAQ Composite index, which gained 7.60 or 0.15% to end Wednesday's session at 5,044.39.
The S&P 500 Composite index, meanwhile, also increased moderately as five of 10 sectors closed in the green. The S&P gained 1.98 or 0.10% to 2,086.05, as stocks in the Utilities and Technology sectors led. Stocks in the Financials and Telecommunications industries lagged, falling by more than 0.5%.
Shares in Alibaba Group Holdings Ltd (NYSE:BABA) on Wednesday plunged more than 5% to a record-low at 71.03, following disappointing quarterly results, underscoring the extreme volatility in Chinese markets. Last month, Yahoo! Inc (NASDAQ:YHOO) announced it will complete a highly-anticipated spin-off of the Chinese e-commerce giant before the end of the year.
The top performer on the Dow was Intel Corporation (NASDAQ:INTC), which gained 0.54 or 1.86% to 29.51, amid further developments with its 3D XPoint flash memory technology unveiled late last month. Shares in Intel (NASDAQ:INTC) are still down by more than 10% for the year. The worst performer was JPMorgan Chase & Co (NYSE:JPM), which fell 1.06 or 1.55% to 67.17.
The biggest gainer on the NASDAQ was Alexion Pharmaceuticals Inc (NASDAQ:ALXN), which gained 4.49 or 2.41% to 190.80. The worst performer was Chinese internet services company Baidu Inc (NASDAQ:BIDU), which fell 6.80 or 4.05% to 161.14. On the S&P 500, the top performer was Fidelity National Information Svcs (NYSE:FIS), which rose 5.45 or 8.38% to 70.52. The worst performer was Macy`s Inc (NYSE:M) which fell 3.45 or 5.11% to 64.08, after posting disappointing results last quarter. In spite of the losses, shares in the retail giant are up by more than 11% this year.
On the New York Stock Exchange, declining issues slightly outnumbered advancing ones by a 1,593 to 1,555 margin.