Stocks were mixed in mid-afternoon trading Wednesday after the Federal Reserve left its key interest rate unchanged, as investors kept close tabs on developments related to tariffs.
The S&P 500 and tech-heavy Nasdaq Composite were recently down 0.1% and 0.6%, respectively, while the Dow Jones Industrial Average added 0.4%. Stocks had lost ground the previous two sessions after a nine-session winning streak that was spurred by generally strong corporate earnings and hopes that the Trump administration will soften its approach on tariffs.
The Fed’s decision to stand pat was expected as the central bank awaits more information about how tariffs will affect the economy. In its statement this afternoon, the Fed said that the risks of higher inflation and higher unemployment have risen. Investors will be closely remarks from Fed Chair Jerome Powell, who will speaking at a press conference this afternoon.
Meantime, market participants are looking for signs of progress in trade negotiations between the U.S. and several other countries, particularly China, amid concerns that tariffs will slow economic growth and hurt corporate profits. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are scheduled to travel to Switzerland for talks with Chinese officials that are slated to start on Saturday. Trump reportedly said Wednesday he is not willing to pull back on Chinese tariffs, which currently stand at 145%.
Shares of companies reporting earnings were among the noteworthy movers on Wednesday. Disney (DIS) shares jumped more than 10%, pacing Dow gainers, after the media and entertainment giant’s quarterly results topped Wall Street’s expectations. Shares of Advanced Micro Devices (AMD) were down slightly, giving up earlier gains, after the chipmaker reported better-than-expected earnings driven by AI-related demand. Server maker Super Micro Computer (SMCI) dropped 6%, while ridesharing company Uber Technologies (UBER) slipped 2% after releasing results.
Among mega-cap technology stocks, Alphabet (GOOG) shares plunged more than 8% after Apple’s (AAPL) senior vice president of services, Eddy Cue, reportedly said that Apple is looking to add AI-powered search options to its Safari browser, and that they could eventually replace standard search engines like Google’s. Apple shares were down about 2%.
Amazon (AMZN) and Meta Platforms (META) each gained more than 1%, while Microsoft (MSFT) and Broadcom (AVGO) inched higher. Nvidia (NVDA) and Tesla (TSLA) fell slightly.
Strategy (MSTR), the big buyer of bitcoin that until recently was known as MicroStrategy, was up 2% as the digital currency surged. Bitcoin was at $96,700, up from an overnight low of $94,500.
Gold futures were down 0.8% at $3,395 an ounce after three straight days of gains.
West Texas Intermediate futures, the U.S. crude oil benchmark, fell 1.8% to $58.05 per barrel, giving back some of the previous session’s big gains. Crude futures hit a four-year low on Monday after the OPEC+ group of oil producers agreed to raise output.
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of loans, notably mortgages, was at 4.27%, down from 4.32% at yesterday’s close. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, rose 0.1% to 99.45.
What Betting Markets Say About Who the Next Pope Will Be
2 hr 33 min ago
The Vatican is picking a new pope. You can bet on who will get the job.
You (probably) weren’t invited to don a red robe, head to the Sistine Chapel and weigh in on the relative merits of some of today’s most prominent spiritual leaders. But your instinct still counts at Polymarket and Kalshi, online prediction markets where people can wager on all kinds of things—including the identity of the next pope.
Pope Francis died last month, and dozens of cardinals met Wednesday to begin voting on a new leader for the Vatican. It may take multiple rounds of voting over a number of days for cardinals to reach the two-thirds majority needed to name a new leader of the Catholic Church.
Beata Zawrzel / NurPhoto / Getty Images)
The top contenders are said to include Cardinal Pietro Parolin, an Italian who was second-in-command under Francis, and Luis Antonio Tagle from the Philippines, according to the New York Times.
Nearly $29 million has collectively been wagered on the matter at Polymarket and Kalshi as of early Wednesday afternoon. On Polymarket, if you accurately bet $1 that Parolin will win, you would get a $3.13 payout; a successful $1 wager on Tagle would bring in $5.21, as of early Wednesday afternoon.
Payouts appear similar on Kalshi. A winning $1 bet on Parolin would result in a $3.72 payout; a $1 wager on Tagle would lead to a $5 reward.
Alphabet Plunges as Apple Weighs Adding AI Search in Browser
3 hr 25 min ago
Shares of Google parent Alphabet (GOOGL) plunged Wednesday after an Apple (AAPL) executive reportedly said the iPhone maker is looking to add AI-powered search options to its Safari browser, and suggested they could eventually replace standard search engines like Google’s.
Shares of Alphabet were down 9% in recent trading. They’ve now lost more than a fifth of their value since the start of the year.
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Apple’s senior vice president of services, Eddy Cue, said Wednesday during testimony in the U.S. Department of Justice’s lawsuit against Alphabet that searches on Apple’s Safari fell last month for the first time, and attributed the drop to rising AI use, Bloomberg reported.
Cue said Apple is in discussions with Perplexity AI as it looks to add AI search options to its Safari browser, with expectations their use could overtake standard search engines like Google’s, the report said.
Some Analysts Concerned About AMD’s AI Revenue
4 hr 26 min ago
Even as Advanced Micro Devices (AMD) reported first-quarter results that beat Wall Street’s expectations, some analysts are expressing concerns that tightening export restrictions to China could harm AI revenue going forward.
Jefferies cut its price target to $100 from $120, while maintaining a “hold” rating for the stock. “AI growth is the primary metric for the stock and on that front estimates move lower,” the analysts said.
On the company’s earnings call, CFO Jean Hu said AMD would take a $1.5 billion revenue hit in 2025 related to limits on sales of its chips to China. Overall, AMD projected second-quarter revenue of $7.1 billion to $7.7 billion. Analysts had called for $7.3 billion.
Citi analysts maintained a $100 target, noting that while AMD’s AI revenue is expected to fall in the first half of the year, “almost every other company has its AI business increasing.”
Meanwhile, Wedbush moved higher to $120 from $115 and UBS moved to $155 from $150.
Wedbush pointed to the success of AMD’s compute and gaming segments, which “significantly outperformed” in the quarter.
AMD shares were up nearly 1% at $99.50 in recent trading.
Supermicro After Server Maker Reduces Revenue Outlook
5 hr 14 min ago
Super Micro Computer (SMCI) shares sank in early trading Wednesday, a day after the server maker and Nvidia (NVDA) partner reduced its sales outlook, as some customers delayed making product decisions amid economic uncertainty.
The company said in its fiscal third-quarter report Tuesday that it now expects full-year revenue of $21.8 billion to $22.6 billion, down from its prior range of $23.5 billion to $25.0 billion.
For its fiscal fourth quarter, Supermicro anticipates sales of $5.6 billion to $6.4 billion and adjusted earnings per share of 40 cents to 50 cents, both well below Visible Alpha expectations. CEO Charles Liang said some customers were delaying commitments amid “economic uncertainty and tariff impacts.”
JPMorgan analysts kept their “neutral” rating on the stock but trimmed their price target to $35 from $36. They said they had expected “a sharper rebound in earnings through both revenue and margins,” adding that Supermicro continues to face “lower cost inventory related headwinds.”
Citi analysts cut their price target on the stock to $37 from $39 but also maintained a “neutral” rating. Supermicro’s “below consensus outlook” for the fourth quarter “implies the pushouts in revenues resulting from customers awaiting next generation GPUs will take more than a quarter to resolve, further exacerbating investor concerns on competitive dynamics, GPU allocation, visibility and AI lumpiness,” the analysts wrote.
Super Micro Computer shares were down more than 5% at around $31 in recent trading. The stock entered Wednesday up 8% so far this year.
Watch These AMD Levels as Stock Rises After Earnings Beat
6 hr 23 min ago
Advanced Micro Devices (AMD) shares rose in early trading Wednesday after the chipmaker posted first-quarter earnings that surpassed Wall Street expectations.
Sales in the company’s data center segment surged 57% in the quarter, helping to allay concerns of a slowdown in AI spending amid uncertainty about what impact the Trump administration’s tariffs will have on global growth. However, the chipmaker cautioned that its results would be affected by charges of roughly $800 million related to tightening export restrictions on sales of its chips to China.
Through Tuesday’s close, AMD shares had gained 18% since the start of the year and risen nearly 30% from their April low, far outpacing the performance of the S&P 500 over those periods.
AMD shares have trended lower within a descending channel since October last year, tagging the pattern’s upper and lower trendlines on multiple occasions since that time. More recently, the stock had rallied toward the channel’s upper trendline and 50-day moving average, two indicators that provided significant resistance on the chart in late March.
Meanwhile, the relative strength index (RSI) has recently crossed back above the 50 threshold ahead of the chipmaker’s earnings report to signal improving price momentum.
Investors should watch major support levels on AMD’s chart around $93 and $78, while also monitoring crucial resistance levels near $116 and $132.
AMD shares were up 1% at around $100 in recent trading.
Read the full technical analysis piece here.
Disney Jumps After Strong Earnings, UAE Park News
7 hr 19 min ago
Shares of The Walt Disney Company (DIS) rose in premarket trading Wednesday after the media and entertainment giant’s fiscal second-quarter results came in better than analysts had expected.
Disney reported adjusted earnings per share (EPS) of $1.45 on revenue of $23.62 billion. Analysts had expected $1.20 and $23.17 billion, respectively, per Visible Alpha.
“Following an excellent first half of the fiscal year, we have a lot more to look forward to, including our upcoming theatrical slate, the launch of ESPN’s new DTC offering, and an unprecedented number of expansion projects underway in our Experiences segment,” CEO Bob Iger said. “Overall, we remain optimistic about the direction of the company and our outlook for the remainder of the fiscal year.”
Separately on Wednesday, Disney announced a partnership with Abu Dhabi-based developer Miral to build its seventh theme park on Yas Island in the capital of the United Arab Emirates. The companies said that Disney will lead the creative efforts, while the resort will be built and operated by Miral
Disney lifted its adjusted EPS outlook for the fiscal year to $5.75, which would represent a 16% increase from fiscal 2024. Last quarter, it said it expected adjusted EPS to grow by a high-single-digit percentage.
The company said it will “continue to monitor macroeconomic developments for potential impacts to our businesses and recognize that uncertainty remains regarding the operating environment for the balance of the fiscal year.”
Disney shares were up 8% in recent premarket trading. They entered the day down roughly 17% since the start of the year.
Major Index Futures Point to Higher Open
8 hr 4 min ago
Futures tied to the Dow Jones Industrial Average were up 0.7%.
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S&P 500 futures were up 0.6%.
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Nasdaq 100 futures also rose 0.6%.
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