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US stocks coasted higher on Wednesday as investors assessed prospects for planned US-China trade talks and waited for the Federal Reserve’s latest interest-rate decision to land.
The benchmark S&P 500 (^GSPC) rose about 0.2%, while the Dow Jones Industrial Average (^DJI) popped roughly 0.5%, or almost 200 points. The tech-heavy Nasdaq Composite (^IXIC) inched higher by 0.1%.
Markets cautiously welcomed news on Tuesday that top US and Chinese officials will meet this weekend for the first major trade talks between the two since President Trump hiked tariffs on Chinese imports to 145% in April.
SNP – Free Realtime Quote USD
As of 10:22:48 AM EDT. Market Open.
^GSPC ^DJI ^IXIC
Faith in the idea that the US and China would eventually get round the table to seal an agreement has helped keep stocks aloft in recent weeks. But signs are that the Geneva meeting won’t bring a big trade deal.
“We’ve got to deescalate before we move forward,” Treasury Secretary Scott Bessent said in an interview on Fox News.
Read more: The latest on Trump’s tariffs
Striking the same note, Trump on Tuesday downplayed the idea that countries could negotiate better tariffs. Speaking at a meeting with Canadian Prime Minister Mark Carney, he laid out a “take it or leave it” choice for US trading partners.
Investors are now getting ready for the Fed’s policy decision due at 2 p.m. ET. Traders are pricing in about 96% odds that the central bank will leave rates unchanged, according the CME’s FedWatch tool. The focus will be on what Chair Jerome Powell has to say about the economy and the future path of rates as the impact of Trump’s historic tariff hikes feeds through.
On the earnings front, Disney (DIS) lifted its profit outlook after delivering an earnings beat driven by a rebound in its US parks business and strong performance in its streaming unit. Novo Nordisk (NVO, NOVO-B.CO) cut its 2025 sales and profit forecasts, but its shares rose on hopes a copycat ban will help sales of its Wegovy weight-loss drug.
LIVE 12 updates
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Disney to expand into Middle East with new theme park in Abu Dhabi
Disney (DIS) just revealed plans for a new theme park in the Middle East.
The media and entertainment giant said Wednesday that the new theme park and resort would be located in Abu Dhabi, United Arab Emirates (UAE), marking its first major expansion into the Middle East and its seventh global resort. This announcement comes 15 years after Disney’s last park project, Disneyland Shanghai, was unveiled in 2010.
The project supports Disney’s broader strategy to invest $60 billion into its theme parks and cruise lines by 2033, including approximately $30 billion already earmarked for expansions in Florida and California.
The Abu Dhabi resort will be developed in partnership with Miral, the state-backed tourism and real estate firm behind many of the UAE’s landmark attractions.
“We are celebrating another great moment in our storied history,” Disney CEO Bob Iger said during the company’s Q2 earnings call Wednesday morning, describing the project as “authentically Disney and distinctly Emirati.”
The announcement comes after the company reported strong second quarter earnings results, driven by a rebound in its domestic parks business and solid performance in its streaming unit. The company also boosted its full-year earnings outlook, sending shares about 10% higher in early trade.
NYSE – Nasdaq Real Time Price USD
As of 10:22:47 AM EDT. Market Open.
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Dow leads at the open
US stocks coasted higher on Wednesday as investors assessed prospects for planned US-China trade talks and waited for the Federal Reserve’s latest interest-rate decision to land.
The benchmark S&P 500 (^GSPC) rose about 0.2%, while the Dow Jones Industrial Average (^DJI) popped roughly 0.5%, or almost 200 points. The tech-heavy Nasdaq Composite (^IXIC) inched higher by 0.1%.
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Strong labor market data doesn’t mean the coast is clear for the US economy
Yahoo Finance’s Josh Schafer writes about how April’s solid jobs report may be masking underlying weakness in the economy:
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Fed’s rate cuts, like Trump’s tariffs, look to be on 90-day pause
Yahoo Finance’s Hamza Shaban writes in today’s Morning Brief newsletter about how both the Federal Reserve and President Trump are on pause.
Read more or sign up here to receive the Morning Brief in your inbox every morning.
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Super Micro stock tumbles as AI server maker lowers 2025 revenue outlook on tariffs, macroeconomic uncertainty
Super Micro Computer (SMCI) stock fell nearly 6% in premarket trading on Wednesday after the company lowered its full-year revenue outlook, citing economic uncertainty amid President Trump’s trade war and fierce competition from other AI server makers.
Super Micro said on Tuesday that it expects its full-year revenue for 2025 to fall between $21.8 billion and $22.6 billion, down from its prior guidance of $23.5 billion and $25 billion.
CEO Charles Liang told analysts in a call following the company’s third quarter earnings results that tariffs and macroeconomic uncertainty “concern” some customers and make it difficult to forecast the adoption of its technology.
Super Micro’s servers contain Nvidia’s (NVDA) AI chips and are used in data centers to power artificial intelligence.
As of Tuesday’s close, Super Micro shares were down nearly 39% in 2025. The stock has plunged as investors weigh the company’s AI-fueled growth against questionable accounting practices, growing competition, and macroeconomic uncertainties.
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Disney pops after earnings beat, boost to profit forecast
Disney’s (DIS) shares climbed over 6% early on Wednesday as investors cheered a quarterly earnings beat and a boost to its full-year profit forecast.
NYSE – Nasdaq Real Time Price USD
As of 10:22:47 AM EDT. Market Open.
Yahoo Finance’s Alexandra Canal reports:
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Uber stock falls as Q1 revenue miss clouds upbeat forecasts
Uber (UBER) stock fell 3% in premarket trading on Wednesday after the company reported revenue rose 14% to $11.53 billion in the first quarter, below Wall Street’s estimates.
However, Uber sees resilient demand for ride-hailing and food delivery in the current quarter and forecast higher gross bookings.
Yahoo Finance’s Pras Subramanian reports:
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All eyes on Powell as Fed grapples with Trump tariff dilemma
Yahoo Finance’s Jennifer Schonberger reports:
The Federal Reserve is widely expected to hold interest rates steady at the conclusion of its policy meeting Wednesday, but the path forward is anything but certain for Jerome Powell.
Investors will be listening closely to the central bank chairman at a 2:30 p.m. ET press conference for any hints on future monetary policy actions after President Trump spent the last few weeks repeatedly calling for the Fed to lower rates while also lobbing insults at Powell.
Trump in recent weeks referred to Powell as a “major loser,” “Mr. Too Late,” and a “total stiff” in a series of social media posts. He also said that Powell’s “termination can’t come fast enough” before later clarifying that he had no intention of removing Powell before the end of his term in May 2026.
Powell and his colleagues expect to be grappling in the months to come with a vexing dilemma. They likely will need to decide which side of their dual mandate to emphasize — price stability or maximum employment — as Trump’s tariffs potentially push inflation higher and possibly act as a drag on economic growth.
Powell last month made it clear he would wait for more clarity before deciding. Some Fed watchers expect him to do the same today.
Read more here on what Wall Street expects in the Fed’s policy decision.
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Novo Nordisk stock rises on hopes for Wegovy recovery
Novo Nordisk’s (NVO, NOVO-B.CO) shares are popping 7% in premarket despite the Danish drugmaker’s cut to its sales forecasts on Wednesday.
The maker of leading weight-loss drug Wegovy said it expects 2025 sales growth of between 13% and 21%, compared with its prior range of 16% to 24%.
But investors are jumping in after Novo’s management flagged an expected boost from a ban on Wegovy copycats in the US, its biggest market.
NYSE – Nasdaq Real Time Price USD
As of 10:22:37 AM EDT. Market Open.
Reuters reports:
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Asian markets rise as US-China meeting builds hope, China cuts interest rates
Major stock indexes across Asia saw gains following the announcement that top officials from the US and China will meet in Switzerland this weekend to open tariff negotiations.
Japan’s benchmark Nikkei 225 (^N225) rose 0.1% while South Korea’s Kospi gained 0.4%. The Australian S&P/ASX 200 (^AXJO) advanced 0.5%
In addition to the opening up of trade talks, China has announced a series of financial measures designed to reduce the impact of US tariffs upon the export-dependent economy.
Beijing’s central bank has released plans to lower key interest rates and reduce requirements for lending from the reserve bank. An additional ‘tactical’ stimulus measure has boosted markets across the region.
The CSI 300 climbed 0.5% as Hong Kong’s Hang Sang Index (^HSI) jumped 0.5%.
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Oil prices rise for a second day bolstered by US-China trade optimism
Oil has continued a two-day streak of gains after US and Chinese officials agreed to a meeting later this week. The potential end of the trade stalemate between the two economic giants pushing the commodity upwards.
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WeightWatchers files for bankruptcy
WeightWatchers has announced that the US branch of the company is filing for Chapter 11 bankruptcy. Currently, parent company WeightWatchers International Inc. (WW) is sitting in $1.15 billion in debt.
Associated Press Finance reports
