01:21 PM EDT, 07/03/2024 (MT Newswires) -- US benchmark stock indexes traded mixed as government bond yields slumped after a services gauge surprisingly fell into contraction territory and bets for a September interest-rate cut rose amid market perception that Federal Reserve Chair Jerome Powell's comments Tuesday were relatively dovish.

The Nasdaq rose 0.9% to 18,188.3, and the S&P 500 climbed 0.5% to 5,537.01 at the early 1 pm ET close on Wednesday. However, the Dow Jones Industrial Average fell less than 0.1% to 39,308.0. Technology, utilities, and materials were the top gainers. Healthcare led the decliners. The US equity and bond markets will be closed on Thursday to observe the US Independence Day.

The US 10-year Treasury yield slumped 8.5 basis points to 4.35%, with the two-, five-, and 30-year rates also trading sharply lower.

In economic news, the Institute for Supply Management's US services index declined to 48.8 in June from 53.8 in May, compared with expectations for 52.6 in a survey compiled by Bloomberg. The index indicates contraction, which is in line with the readings from Richmond and Dallas Fed banks but in contrast to other regional services data that suggest that the sector expanded.

ADP's monthly measure of private payrolls showed a 150,000 increase in June, below expectations compiled by Bloomberg for 165,000. The June gain followed an upwardly revised 157,000 in May.

The probability that the Federal Open Market Committee will cut interest rates by 25 basis points in September jumped to 68% as of Wednesday afternoon from 63% the previous day.

The FOMC minutes from the June meeting are due out later on Wednesday.

Gold soared 1.4% to $2,365.0 an ounce, and silver surged 3.9% to $30.81.

The FOMC has made "quite a bit of progress" in bringing inflation back to its target of 2%, Powell, reportedly, said Tuesday while noting policymakers need to see more encouraging data before lowering interest rates. "The last (inflation) reading and the one before it to a lesser extent, suggest that we are getting back on the disinflationary path."

The US Dollar index dropped 0.4% to 105.29.

Further, in economic news, the S&P Global US services index was revised downward to 55.3 in June from the 55.1 flash reading, compared with expectations for no revision in a survey compiled by Bloomberg. The June index is above the 54.8 reading in May.

US initial jobless claims rose to 238,000 in the week ended June 29 from an upwardly revised 234,000 level in the previous week, compared with expectations for an increase to 235,000 in a survey of analysts compiled by Bloomberg. The four-week moving average rose to 238,500 from 236,250 in the previous week.

West Texas Intermediate crude oil climbed 0.4% to $83.17 a barrel.

In company news, BofA Securities raised its price target on Tesla (TSLA) to $260 from $220 while maintaining its buy rating. Tesla reported stronger-than-expected second-quarter deliveries on Tuesday. Shares of the electric automaker jumped 6.5%, among the top gainers on the S&P 500 and the Nasdaq.

National Amusements reached a preliminary deal to sell its controlling interest in Paramount Global ( PARAA ) to Skydance Media, media outlets reported, citing unnamed sources familiar with the matter. Shares of Paramount surged 6.9%, the top performer on the S&P 500.