Stocks climbed on Wednesday, with Apple leading the charge. The S&P 500 rose 0.7% in afternoon trading, while the Dow Jones Industrial Average added 97 points (0.2%) as of 1:09 p.m. Eastern time. The Nasdaq composite advanced 1%.
Apple played a major role in the market’s gain, contributing nearly half of the S&P 500’s upward move. Its stock jumped 6% ahead of an expected White House announcement, where the company is anticipated to unveil an additional $100 billion in U.S. investments over the next four years.
Elsewhere, market activity was mixed due to a variety of corporate earnings results. McDonald’s and Shopify shares moved higher after their financial updates. In contrast, Super Micro Computer saw a sharp drop following a disappointing earnings report, and Disney also slipped despite posting better-than-expected profits.
Investors remain cautious about the potential economic impact of tariffs introduced by President Donald Trump. However, expectations for interest rate cuts by the Federal Reserve and a string of strong earnings reports from U.S. companies have helped stabilize the broader market. The S&P 500 remains just shy of its all-time high, reached late last month. The strong rally has raised concerns among some analysts that stock valuations may be getting stretched.
McDonald’s rose 3% after surpassing analyst estimates for both profit and revenue, helped by a successful meal promotion tied to the “Minecraft” movie.
Shopify surged 19.5% following stronger-than-expected revenue last quarter and optimistic guidance for the current quarter, indicating continued momentum in its e-commerce platform.
Arista Networks also helped lift the S&P 500, jumping 18% after beating earnings estimates and delivering an upbeat revenue outlook.
These gains helped counterbalance a 21% plunge in Super Micro Computer’s stock. Despite its impressive 88% rise earlier this year, the server manufacturer’s latest financial results fell short of expectations, and its future profit forecast disappointed investors.
Disney dropped 3%. Although its profit exceeded forecasts, revenue came in lower than anticipated. Analysts noted that investors may have hoped for a more significant boost to its profit guidance.
Separately, the NFL announced a tentative agreement with Disney’s ESPN. The deal would give ESPN access to the NFL Network, NFL Fantasy, and distribution rights for RedZone. In exchange, the NFL would receive a 10% ownership stake in ESPN.
Advanced Micro Devices (AMD) slid 6.6% after reporting earnings that merely met expectations. While the company’s forward-looking guidance was solid, investors seemed to want more after the stock’s 44.3% rise earlier this year.
In the bond market, Treasury yields were relatively stable. The yield on the 10-year Treasury inched up to 4.24% from 4.22% the previous day, remaining lower than last week’s levels. A weaker-than-expected jobs report last Friday raised concerns that tariffs could be discouraging hiring, fueling speculation that the Fed might cut interest rates at its September meeting.
Lower interest rates can support economic growth and boost investment prices, though they also carry the risk of higher inflation.
Overseas, stock markets saw modest gains across Europe and Asia.
Also Read:
Wall Street Rebounds as U.S. Stocks Regain Most of Friday’s Losses
