Stocks were slightly higher in early trading Wednesday as market participants awaited fresh developments on the trade front and digested employment data that came in weaker than expected.
The Dow Jones Industrial Average was up 0.2% recently, while the S&P 500 and Nasdaq Composite added 0.3% and 0.5%, respectively. The major indexes are coming off of two straight days of gains, boosted by the strong performance of technology stocks.
Stocks have rallied in recent weeks—the S&P 500 and tech-heavy Nasdaq Composite posted their biggest monthly gains last month since November 2023—as concerns about President Donald Trump’s tariff plans have subsided, while corporate earnings have remained strong and various indicators have shown the economy to be resilient.
Investors appeared to be looking past Trump’s comment this morning, in a post on Truth Social, that Chinese President Xi Jinping is “extremely hard to make a deal with.” The two countries last month suspended the massive tariffs they had imposed on one another while they worked on a broader trade agreement, and recent back-and-forth from the countries has at times roiled financial markets. Meanwhile, private sector payrolls numbers released by ADP this morning were weak, which places even more importance on the May jobs report coming on Friday.
Shares of the world’s largest technology companies were mostly higher, led by chipmaker a more than 2% gain for chipmaker Broadcom (AVGO), which is due to release its quarterly results after the closing bell tomorrow. Rival chip company Nvidia (NVDA) was up 0.5%, while Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) and Meta Platforms (META) also gained ground. Shares of EV maker Tesla (TSLA) fell slightly.
Chip stocks were once again among the big gainers. ON Semiconductor (ON) was up more than 4% after soaring 11% yesterday when the company’s CEO said there are signs of recovering demand in its key markets. Globalfoundries (GFS) also climbed more than 4%, while the VanEck Semiconductor ETF (SMH) added more than 1%.
A handful of companies were on the move after releasing quarterly results. Shares of CrowdStrike (CRWD) tumbled more than 7% this morning after the cybersecurity provider issued disappointing revenue guidance. Hewlett Packard Enterprise (HPE) was up 4% after a better-than-expected earnings report, while Dollar Tree (DLTR) dropped 9% after topping Wall Street estimates, though the discount retailer warned that tariffs could take a bite out of profits.
Wells Fargo (WFC) shares rose about 3% in early trading following news that the Federal Reserve had lifted capital restrictions placed on the bank in 2018 following a series of scandals.
The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of consumer and business loans, fell after the ADP numbers and was at 4.41% recently, down from 4.46% at yesterday’s close. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was down 0.2% at 99.05.
Bitcoin was at $105,200 in recent trading, down from an overnight high of $106,300. The digital currency is down from its record high of around $112,000 set two weeks ago.
Gold futures were up 0.1% at $3,380 an ounce, stabilizing after yesterday’s decline, while West Texas Intermediate futures, the U.S. crude oil benchmark, rose 0.1% to $63.45 per barrel, adding to the big gains posted in recent sessions amid geopolitical uncertainty.
Wells Fargo Shares Rise as Fed Lifts Asset Cap
28 minutes ago
The Federal Reserve has lifted restrictions imposed on Wells Fargo’s (WFC) growth seven years ago following a series of scandals, including one where staff set up fake accounts.
The news that the Fed had removed the approximately $1.95 trillion cap on the bank’s assets sent Wells Fargo shares higher Wednesday morning. The stock was up about 3% in the opening minutes of trading.
On Tuesday, Wells Fargo said that the Fed’s Board of Governors had concluded that the lender had met the conditions the regulator had imposed to improve its governance and risk controls. The bank also said it had met the Fed condition that a third-party review its work independently.
“The Federal Reserve’s decision to lift the asset cap marks a pivotal milestone in our journey to transform Wells Fargo,” Wells Fargo CEO Charlie Scharf said. “We have changed and simplified our business mix, and we have transformed the management team and how we run the company.”
Citi analysts said the “most meaningful benefits of the removal are that WFC can take on more commercial deposits and use more balance sheet to fund trading growth; however, we don’t expect immediate tailwinds to loan growth or expense efficiencies.” Citi said that loan growth has been limited less by the asset cap than the uncertain economy that is weighing on loan demand. The brokerage, which has a neutral call on Well Fargo, said most of the removal of the cap has already been priced in.
Scharf also noted the work of the company’s 215,000 employees and announced plans to give full-time employees a special $2,000 award, with most of the staffers getting the funds as a restricted stock grant.
With its gains this morning, Wells Fargo shares are up about 10% in 2025.
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CoreWeave Stock Price Levels to Watch as AI Darling Surges
1 hr 10 min ago
Shares in AI darling CoreWeave (CRWV) rose in premarket trading, adding to huge gains in recent days after cloud computing provider and Nvidia (NVDA) partner signed a long-term data center leasing deal with Applied Digital (APLD).
Investors have bid up CoreWeave stock in recent weeks after Nvidia revealed a higher stake in the company than it had previously disclosed and the firm posted first-quarter revenue that grew more than 400% year-over-year amid surging demand for AI infrastructure.
Since the stock went public in late March, it has surged 276% above its initial public offering price of $40. The stock was up more than 5% at around $159 ahead of the bell Wednesday, after surging 25% yesterday and 8% on Monday, amid a broader upturn for stocks tied to the AI boom.
CoreWeave shares broke out from an ascending triangle on Tuesday that had been in play since late May, possibly paving the waying for a continuation move higher. Importantly, the move occurred on above-average volume, signaling buying conviction by larger market players, such as institutional investors and hedge funds.
While the relative strength index confirms bullish price momentum, the indicator also flashes extreme overbought conditions in the stock, which could lead to short-term profit-taking.
Bars pattern analysis projects a potential upside target of around $200 and indicates the trend higher could last until next month. Investors should watch key support levels on CoreWeave’s chart around $122, $97 and $73.
Read the full technical analysis piece here.
Major Index Futures Point to Higher Open
2 hr 6 min ago
Futures tied to the three major stock indexes were each up 0.2% in recent trading.
Dow Jones Industrial Average
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S&P 500
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Nasdaq 100
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