A rally in Big Tech stocks led the broader market to a higher close Wednesday, lifting the Nasdaq to an all-time high and helping Wall Street claw back most of its losses from earlier in the week.
- The S&P 500 rose 37.74 points, or 0.6%, to 6,263.26.
- The Dow Jones Industrial Average rose 217.54 points, or 0.5%, to 44,458.30.
- The Nasdaq composite rose 192.87 points, or 0.9%, to 20,611.34.
Gains in technology and communication services stocks helped drive the market higher, outweighing declines in energy and other sectors. Nvidia rose 1.7% and closed at $162.88. The chipmaker became the first public company to
top $4 trillion in value as its share price briefly topped $164 in the early going, the
AP reports. Shares in the AI boom poster child were going for around $14 at the start of 2023.
Elsewhere among Big Tech stocks, Microsoft was up 1.4%, Meta rose 1.7%, and Google parent Alphabet added 1.4%. Amazon rose 1.5% a day after the online retail giant kicked off Prime Day, extending it for the first time to four days.
- The tech rally came as Wall Street continued to weigh the latest developments in President Trump's renewed push this week to use threats of higher tariffs on goods imported into the US in hopes of securing new trade agreements with countries around the globe. Trump announced tariffs on seven more countries Wednesday.
- Financial markets swooned from day-to-day for weeks after the White House rolled out its proposed tariff hikes in the spring. With the new batch of US taxes on imports not set to kick in until next month, that gives Wall Street a breather just as the next corporate earnings season is set to begin. "I think most people are tired of tariff news and they're starting to realize it just doesn't matter much," says Jay Hatfield, CEO of Infrastructure Capital Advisors. "We're pretty bullish about earnings. I think the rest of the market is too."
- Wall Street analysts predict that companies in the S&P 500 will deliver a combined 5% annual growth in second-quarter earnings, according to FactSet. That would mark the lowest growth rate for the index since the fourth quarter of 2023.
- Delta Air Lines kicks off earnings season on Thursday, with most analysts expecting the airline's second-quarter profit to decline from a year ago. Delta and other major US carriers have trimmed their flight schedules and pulled their forecasts this year as consumers pull back on travel and other nonessential spending due to uncertainty about how Trump's tariffs will affect their budgets.
- Pharmaceutical giant Merck is buying Verona Pharma, a UK company that focuses on respiratory diseases, in an approximately $10 billion deal. If approved by Verona shareholders and UK officials, Merck will get access to Verona's chronic obstructive pulmonary disease medication Ohtuvayre. Verona shares jumped more than 20% on the news, while Merck shares were up 2.9%.