US Stocks Rebound from Early Losses, Boosted by Tech Spending

After falling at the open on Wednesday, US stocks rebounded throughout the day. The tech-heavy Nasdaq Composite (^IXIC) edged lower but recovered, while the benchmark S&P 500 (^GSPC) rose by 0.4%. The Dow Jones Industrial Average (^DJI) led the gains, climbing 0.7% or over 300 points.

Mixed Earnings Impact

Earnings reports from Alphabet (GOOGL, GOOG) and AMD (AMD) fell short of expectations, weighing on their respective share prices. Alphabet's cloud revenue missed estimates, while AMD's disappointing data-center sales forecast raised concerns about the momentum in the AI sector.

Big Tech Spending Boosts Nvidia

Despite the earnings disappointment, Nvidia (NVDA) shares surged over 5%. The chipmaker's strong performance and increased capital spending plans by Big Tech giants like Alphabet boosted investor sentiment in the sector.

Fed Officials Reassure on Tariff Turmoil

Federal Reserve officials expressed a unified message this week, emphasizing that they would not rush to change their stance in response to President Trump's tariffs. They indicated a willingness to wait and see how the situation unfolds.

Tech Giants' Aggressive Capital Expenditure

Alphabet, Meta (META), and Microsoft (MSFT) are collectively planning to spend $228 billion in capital expenditure in 2025, primarily on artificial intelligence infrastructure. This represents a significant increase from their spending in 2024.

Trump Tariffs' Impact on Housing Affordability

President Trump's proposed tariffs could increase the cost of homebuilding, potentially passing on the burden to homebuyers. The higher mortgage rates and construction costs could make homeownership less affordable.

Nasdaq Lags at Open

US stocks initially pulled back on Wednesday as investors reacted to the mixed earnings reports and ongoing trade concerns. The Nasdaq Composite underperformed, slipping 0.6%.

Disney Earnings Beat, Parks Hit by Hurricanes

Disney (DIS) reported first-quarter earnings that exceeded expectations. The streaming segment swung to a profit, but the parks business faced setbacks due to hurricanes and cruise ship investments.

Apple Dips on China Probe Report

Apple (AAPL) shares declined after Bloomberg reported that China's antitrust watchdog is considering an investigation into its App Store policies. The move is seen as a potential retaliation to US tariffs.

Goldman Sachs Warns of Escalating Tariffs

Goldman Sachs chief economist Jan Hatzius predicts that the 10% China tariffs may be just the beginning of a broader tariff war.

AMD Shares Drop on AI Concerns

AMD shares tumbled over 6% despite a quarterly revenue beat. The company's weak data-center sales forecast and limited AI guidance disappointed investors.

Chipotle Faces Premarket Sell-Off

Chipotle (CMG) shares plunged 7% in premarket trading after reporting soft sales guidance and mixed margin commentary.

Toyota Raises Full-Year Profit Forecast

Toyota (TM) boosted its full-year operating profit forecast by 9%, showcasing confidence in its ability to navigate potential tariffs. The automaker also announced plans to establish a new subsidiary in Shanghai to manufacture electric vehicles and batteries.