Market Update: S&P 500 Rally Paused

Stocks were mixed Wednesday as the broader market rally took a pause. The S&P 500 and Nasdaq Composite closed lower, while the Dow Jones Industrial Average climbed over 90 points.

Here's how the market settled on Wednesday:

S&P 500 Index (NYSE: SPY): -0.38% or -16.33 points to 4,267.52

Dow Jones Industrial Average (NYSE: DIA): +0.27% or +91.74 points to 33,665.02

Nasdaq Composite Index (NASDAQ: QQQ): -1.29% or -171.52 points to 13,104.90

One of the top drivers of market moves on Monday was data on the U.S. trade deficit for April, which continued to increase to reach $74.6 billion. Meanwhile, exports fell by $9.2 billion and imports rose by $4.8 billion.

Coinbase (NASDAQ: COIN) also remained in-focus on Wednesday following charges from the U.S. Securities and Exchange Commission (SEC) on Tuesday. Shares of the cryptocurrency exchange fell 12% after the regulator alleged it was operating as an unregistered exchange and broker.

Ark Invest's Cathie Wood added Coinbase to multiple exchange-traded funds amid the sell-off. Wood added nearly 330,000 shares to her flagship Ark Innovation ETF (NYSE: ARKK), roughly 54,000 shares to the Ark Next Generation Internet ETF (NYSE: ARKW) and about 35,700 shares to Ark Fintech Innovation ETF (NYSE: ARKF) -- all these purchases combined are more than $21.6 million.

On the analyst front, JPMorgan Chase's Doug Anmuth raised the firm's price target on Netflix (NASDAQ: NFLX) on Wednesday, believing that the streaming giant's password sharing policy could increase revenue growth.

Bank of America analyst Vivek Arya reiterated the firm's Buy rating on Broadcom (NASDAQ: AVGO) on Wednesday following a keynote address from CEO Hock Tan. Arya says Broadcom continues to be a "best-in-class" buying opportunity as AI helps boost the company's earnings.

"Management presented a compelling and unique vision of focus on premium compute/networking products, laserfocus on operational efficiency, consistent GM expansion, and best-in-class FCF generation/return (FCF margins of 50%+ the highest in semiconductor industry," Arya wrote in a Wednesday note.

In single-stock news, Stitch Fix (NASDAQ: SFIX) rose nearly 28% on Wednesday after reporting a smaller-than-expected loss in its recent earnings report. The company also said it is exploring exiting the U.K. market in the 2024 fiscal year. Dave & Buster's (NASDAQ: PLAY) shares popped 18% after the company posted better-than-expected revenues in the first quarter.

Affirm (NASDAQ: AFRM) shares rose after the buy now, pay later company was added as a checkout option on Amazon (NASDAQ: AMZN). The company allows shoppers to buy products in installment loans.

Looking ahead, markets will remain cautious ahead of May's Consumer Price Index reading due out next Tuesday.