By US stocks rose on Wednesday as traders took in strong earnings results to bounce back from a sell-off in the chip sector in the previous session.
Major averages ended with a gain, and the Dow Jones Industrial Average climbed more than 300 points to close at a record high.
Morgan Stanley beat estimates for the third quarter, sending shares up almost 7%. United Airlines also surpassed estimates for the last reporting period, causing shares to pop over 12% by the end of the day.
Chip stocks traded mixed, struggling to fully recover after a sell-off in the sector on Tuesday. ASML cut its sales guidance for 2025, sparking worries about the demand outlook for AI-enabling chips.
TSMC and Advanced Micro Devices traded slightly lower. Investors have their eye on TSMC in particular, which is set to report earnings early Thursday.
“The focus will remain on chipmakers after the sector was hit on the back of a profit warning from Dutch chip equipment maker ASML and reports the US was capping sales of advanced AI chips from American companies such as Nvidia on a country-specific basis,” Fawad Razaqzada, an analyst at Forex.com, said in a statement. “Traders will be wondering whether Tuesday marked a change in the trend. Is it time to start shorting the markets, or will the dip buyers once again come to the rescue?”
Stocks, though, are on par for another strong quarter of earnings results. The S&P 500 is on track to report 7% year-per-year earnings growth for the third quarter, according to estimates from FactSet.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Wednesday:
- S&P 500: 5,842.46, up 0.47%
- Dow Jones Industrial Average: 43,077.70 up 0.79% (+337.28 points)
- Nasdaq composite: 18,367.08, up 0.28%
Here’s what else is going on:
- The stock market is in a “mania” that could set the stage for a 26% drop in 2025, Stifel says.
- Billionaire David Einhorn says Warren Buffett’s recent stock sales show just how overvalued the market is.
- The stock market has flashed a sell signal not seen since February 2021, according to Bank of America.
- Top Wall Street analysts are boosting their forecasts for the stock market as the bull market continues.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil edged lower to $70.50 a barrel. Brent crude, the international benchmark, was slightly higher at $74.32 a barrel.
- Gold rose 0.5% to $2,691 an ounce.
- The 10-year Treasury yield slipped two basis points to 4.014%.
- Bitcoin was up 1.13% to $67,702.
