US Stocks Recover Losses Wednesday, Tech Gains
US stocks reversed earlier losses to close higher on Wednesday, boosted by a surge in Nvidia shares and positive earnings from Alphabet.
Market Overview
* The tech-heavy Nasdaq Composite (^IXIC) gained 0.2%.
* The benchmark S&P 500 (^GSPC) rose 0.4%.
* The Dow Jones Industrial Average (^DJI) led gains, rising 0.7% or over 300 points.
Earnings Impact
* Alphabet (GOOG) fell nearly 7% after cloud revenue missed estimates.
* AMD (AMD) shares dropped over 6% despite a revenue beat, citing a weak data-center sales forecast.
* Nvidia (NVDA) surged over 5%, helping lift the major indexes.
Bond Market
* The 10-year Treasury yield (^TNX) fell nine basis points to hit 4.42%, its lowest since December 2024.
* Interest rate-sensitive sectors, such as real estate and utilities, rallied in response.
Tariff Concerns
* President Trump's proposed tariffs on goods from China continue to weigh on the market.
* Big Tech companies, like Alphabet and Apple (AAPL), are facing increased scrutiny over their operations in China.
Fed Policy
* Federal Reserve officials have indicated they will not rush to change interest rates amidst tariff uncertainty.
Other News
* Disney (DIS) shares rose in premarket trading after reporting a quarterly earnings beat.
* Apple shares fell after Bloomberg reported that Beijing is investigating its App Store.
* Toyota (TM) raised its full-year operating profit forecast by 9%.