Mixed Market Performance Ahead of Key Events
U.S. stocks exhibited mixed performance on Wednesday morning, with subdued sentiment prevailing ahead of significant events such as the first Big Tech earnings reports and the Federal Reserve's interest rate decision.
The Nasdaq Composite (^IXIC), heavily weighted towards technology, declined nearly 0.5% after rebounding on Tuesday. The S&P 500 (^GSPC) fell approximately 0.2%, while the Dow Jones Industrial Average (^DJI) gained around 0.05%.
Fed Outlook and Earnings in Focus
Market participants remain cautious as the Federal Reserve is poised to announce its policy decision. While interest rates are expected to remain unchanged, investors eagerly anticipate answers to key questions during Fed Chair Jerome Powell's press conference regarding the potential for further rate cuts and the bank's stance on President Trump's recent tariff actions.
Meanwhile, earnings reports from Meta (META) and Microsoft (MSFT) after the bell will provide insights into the impact of heavy AI spending on Big Tech's growth prospects. Additionally, Tesla (TSLA) will round out the day's megacap earnings releases.
Chip Stocks Rebound After DeepSeek Concerns
ASML (ASML), a major player in the AI chip supply chain, reported stronger-than-expected earnings, boosting the company's stock by 6%. CEO Christophe Fouquet downplayed concerns raised by DeepSeek's new AI model, suggesting that it could potentially increase demand for AI chips.
Nvidia Faces Challenges Despite Comeback
Nvidia (NVDA), an AI leader, has experienced a volatile week. Despite a 9% rebound on Tuesday, the stock initially declined by nearly 4% on Wednesday. Investors await earnings results from its customers Microsoft (MSFT), Meta (META), and Tesla (TSLA) for further guidance.
Apple Downgraded Ahead of Earnings
Apple (AAPL) received a third downgrade in a week from Oppenheimer, citing concerns over slowing iPhone sales and limited AI innovation. The company's fiscal first quarter results are expected after the bell on Thursday.
Trump Media Expands Into Financial Services
Trump Media & Technology Group (DJT) announced plans to enter the financial services market, leading to a 15% surge in its premarket trading. The company, linked to former President Donald Trump, will launch a fintech brand called "Truth.Fi."