Steven Gohl, a trader, is seen working at the New York Stock Exchange. (Photo by Richard Drew/AP)
Wall Street bounced back on Wednesday, powered by a sharp rise in Apple shares. The tech giant’s stock jumped 5.1%, helping the broader market recover from last week’s slump. Investors pushed the S&P 500 up by 0.7%, the Nasdaq climbed 1.2%, and the Dow Jones added 81 points, or 0.2%.
Apple’s rally played a massive role in the market’s upward momentum, contributing to over one-third of the S&P 500's gain. The boost came just before a White House event where Apple was expected to announce an additional $100 billion investment in the U.S. over the next four years.
Mixed Trading Across Other Stocks
Elsewhere on Wall Street, stock performances were mixed as earnings reports rolled in. Some companies impressed investors, while others fell short:
- McDonald’s rose 3% after beating expectations for both profit and revenue. A promotional tie-in with the “Minecraft” movie helped drive sales.
- Shopify surged 22% following a strong quarterly report and a promising forecast, reassuring investors that its momentum continues.
- Arista Networks soared 17.5%, reporting stronger profits and future revenue projections that topped analyst predictions.
- Super Micro Computer, on the other hand, dropped 18.3% after missing expectations for both earnings and revenue. Despite a solid year-to-date performance, its weak forecast disappointed investors.
Disney Disappoints Despite Beating Profit Estimates
The Walt Disney Co. slipped 2.7% even though its profits beat estimates. The company’s revenue, however, failed to meet expectations. Some analysts believed Disney didn’t raise its future profit guidance enough to satisfy market hopes.
Disney did announce a nonbinding deal with the NFL, giving ESPN access to the NFL Network, NFL Fantasy, and the RedZone channel. In return, the NFL will receive a 10% stake in ESPN—a strategic shift that could reshape sports broadcasting in the U.S.
AMD Dips Despite Solid Forecasts
Advanced Micro Devices (AMD) lost 6.4% in stock value. While its quarterly profit matched expectations and its forecast looked steady, investors had already driven its stock up over 44% this year, making them harder to impress.
A Market Looking Ahead to Rate Cuts
Despite concerns about President Trump’s tariffs affecting business sentiment, investor confidence is being buoyed by hopes of Federal Reserve interest rate cuts. The 10-year Treasury yield held steady at 4.22%, down from last week’s levels after a weak jobs report hinted at slowing hiring.
That jobs data has fueled speculation that the Fed may lower interest rates in September. If so, this could further lift market confidence and support both the economy and stock prices—although it might also raise concerns over inflation.
Global Markets Show Modest Gains
Outside the U.S., stock indexes in Europe and Asia posted modest gains, reflecting cautious optimism in the global economy.
