Updated 1 min read
US stocks were mixed on Wednesday as investors weighed President Trump’s latest 25% tariff salvo and waited for Federal Reserve minutes for insight into future policy.
The benchmark S&P 500 (^GSPC) moved about 0.1% higher after closing at a fresh record on Tuesday while the tech-heavy Nasdaq Composite (^IXIC) was also narrowly in positive territory. The Dow Jones Industrial Average (^DJI) fell 0.3%.
Markets are caught in wait-and-see mode as they wait for the true impacts of President Trump’s threatened tariffs to show themselves.
But the recent record-high for the S&P 500 suggests stock markets could prove resilient in the face of Trump’s fast-moving trade policy overhaul. Another tariff threat came late on Tuesday, when the president said to expect additional duties on autos, chips, and pharmaceuticals. A flat tariff “in the neighborhood of 25%” would apply to all foreign automakers and start as soon as April 2, he said.
Investors are meanwhile treading carefully as they count down to Wednesday’s release of minutes from the Fed’s January meeting. The focus is on policymakers’ view of how far Trump’s tariffs could spur inflation, and what that means for the chances of rate cuts. In recent days, Fed officials have reiterated they expect to keep rates on hold while they assess the state of the economy.
As earnings season winds down, Etsy (ETSY) released results early Wednesday that disappointed investors.
LIVE 15 updates
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Tariffs could force Apple to raise prices: BofA
Apple (AAPL) may have no other choice but to raise prices if Trump follows through on his latest tariff threat.
According to a new note from Bank of America, expected tariffs from the Trump administration could hamper earnings growth and force the tech giant to increase costs across its various phones and products.
Last week, Trump ordered that federal agencies study reciprocal tariffs on trading partners, noting no company would be exempt.
BofA estimated that a 10% tariff on all Apple products imported into the US would have a negative earnings impact of 2% to 3%, depending on whether or not the company raises prices.
“In a scenario where Apple does not raise prices in the US, we see a $0.26 negative impact (-3.1%) to EPS in calendar 2026,” Bank of America analyst Wamsi Mohan said. “If Apple raises prices by ~3% in the US, the earnings impact would be $0.21 (-2.4%), assuming 5% fewer units sold.”
According to the firm, Apple would have to raise prices by about 9% to offset the impact of 10% tariffs.
India also poses a challenge given the reciprocal tariffs Trump could impose on the country would likely be higher than China’s current 10% levy.
“Apple has been shifting manufacturing to India over the last few years and ~15% of iPhones are now produced there,” Mohan said. “Currently, India imposes 16.5% to 22% tariffs on mobile phones and certain consumer electronics produced outside the country.”
Apple shares have struggled so far this year, down over 2% and underperforming the benchmark S&P 500 (^GSPC) and some of its Magnificent Seven peers.
Still, the analyst maintained his Buy rating and price target of $265 a share.
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Magnificent 7 have tough start to 2025
As we’ve been writing, the “Magnificent Seven” tech stocks — Apple (AAPL), Alphabet (GOOGL, GOOG), Microsoft (MSFT), Amazon (AMZN), Meta (META), Tesla (TSLA), and Nvidia (NVDA) — have no longer been leading the market to start 2025.
And as Charles Schwab chief investment strategist Liz Ann Sonders pointed out on X this morning, most of their rankings in S&P 500 performance have tumbled year to date. In 2024, the Magnificent Seven had three of the top 30 performers in the S&P 500. This year, the cohort has just one company, Meta, in the top 200. As seen below, Amazon, Apple, Microsoft, Alphabet, and Tesla actually all rank in the bottom half of year-to-date performance among members of the S&P 500.
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Apple debuts iPhone 16e for $599
Yahoo Finance’s Dan Howley reports:
Apple (AAPL) revealed its iPhone 16e on Tuesday, a budget-friendly iPhone that includes the company’s Apple Intelligence platform and its first in-house designed modem.
The iPhone 16e features a design that’s more closely aligned with Apple’s mid-range and high-end iPhones than its previous entry-level phone, the iPhone SE, and comes complete with the company’s Face ID facial recognition technology and an upgraded camera system.
Available Feb. 28 for $599, the iPhone 16e includes the same A18 chip used in the $799 iPhone 16 and $899 iPhone 16 Plus, as well as a single 48-megapixel camera around back. Apple says the camera will also feature a built-in 2x telephoto zoom for close-up shots.
Apple’s stock was largely flat on the news.
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Super Micro stock surges, recovers losses from Hindenburg report
Super Micro Computer stock (SMCI) spiked 6% Wednesday, extending a weeklong surge that has seen the stock fully recover its losses from a scathing report that accused the server maker of accounting violations last summer.
Super Micro shares gained more than 16% Tuesday, reaching their highest level since Aug. 26, the day before short-selling firm Hindenburg Research published the report, which, in addition to accusations of accounting “manipulation,” alleged that the company had violated export controls and that its executives had not properly disclosed its relationships with suppliers.
Super Micro makes computer server products for data centers using Nvidia’s (NVDA) AI chips and has a major deal with Elon Musk’s mammoth xAI data center in Tennessee. The stock has been on a tear in 2025, up 83% year to date, making it the top-performing member of the S&P 500.
But even with its recent upswing, Super Micro shares remain far below their record closing price of $114 last March, just before the server maker was added to the S&P 500.
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Hims & Hers shares soar 20% on at-home lab testing facility acquisition
Hims & Hers (HIMS) stock rallied as much as 20% early Wednesday morning after the health and wellness platform said it plans to introduce at-home lab testing through its platform.
The company will provide the new service through its acquisition of at-home lab testing facility Trybe Labs. The acquisition will allow Hims & Hers to support at-home blood draws and comprehensive blood testing.
Shares of Hims & Hers, which were heavily shorted, have been on a wild ride this year. The stock is now up more than 180% since the start of 2025.
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Alibaba said to be among potential investors in DeepSeek
DeepSeek, the operator of an upstart Chinese AI chatbot, may be seeking funding from Alibaba (BABA, 9988.HK) and Chinese-state affiliated funds, according to a report from the Information.
The Information noted that Alibaba declined to comment on the report but added that if DeepSeek accepts its funding, that could mark a shift in the Chinese startup’s business model.
It could lead DeepSeek to “pivot away from a primary focus on research toward building a business that generates meaningful revenue and eventually profits, according to people with knowledge of those discussions,” the Information said.
Alibaba’s stock, which has rallied nearly 50% this year in part due to AI excitement, was little changed just after the open.
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Stocks open lower
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Electric vehicle maker Nikola files for bankruptcy
Nikola (NKLA) filed for bankruptcy Wednesday morning, ending a slow decline for the electric vehicle maker that was once a retail trader darling.
The filing ends several embattled years of struggles for the EV company that came public via a special purpose acquisition company in 2020. In its Chapter 11 bankruptcy filing, Nikola listed assets between $500 million and $1 billion and liabilities between $1 billion and $10 billion.
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Etsy stock falls after holiday sales miss
Etsy (ETSY) shares slid roughly 6% in premarket trading after the online marketplace’s holiday sales fell short of Wall Street estimates.
Fourth quarter revenue came in at $852.2 million, compared with the $862.8 million expected, as spending on gifts and hand-made goods faltered. It still grew 1.2% fr Q4 a year ago, thanks to strength in Etsy ads, the company said.
Another key metric — consolidated gross merchandise sales (GMS) — also missed the mark, coming in at $3.74 billion, versus the $3.88 billion expected. GMS indicates the total dollar value of everything sold on Etsy’s platform.
The downbeat revenue figures eclipsed a profit beat, with earnings per share of $1.03 topping the $0.93 estimated by analysts.
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Europe stocks retreat as earnings stutter, tariffs loom
The record-setting rally in European stocks hit a wall on Wednesday as disappointing earnings added to caution over Trump’s plan for tariffs on cars, chips, and drugs.
The pan-European Stoxx 600 (^STOXX) index pulled back 0.5% after closing at an all-time high on Tuesday. Philips (PHG, PHIA.AS) shares fell over 10% in Amsterdam after the medical gear maker forecast a drop in sales thanks to weak Chinese spending.
In London, the FTSE 100 index (^FTSE) slid 0.4% as a surprise jump in inflation to its highest level in 10 months dented hopes for interest rate cuts.
Elsewhere, Germany’s DAX (^GDAXI) sank 0.8%, while the CAC (^FCHI) in Paris retreated 0.7% as concerns about security and trade built amid tariff threats and a warming in US-Russia relations.
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Trump plans 25% tariffs on autos from early April
President Trump has turned his tariff bazooka on imports of autos, chips, and pharmaceuticals, vowing late Tuesday to impose additional duties of at least 25%.
Automakers around the world — including the US — were already facing a risk that Trump’s already announced tariffs on Mexico would hit their plants there. US-listed shares of Stellantis (STLA) slid over 2% in premarket trading on Wednesday, while Toyota (TM) shed 1%. Volkswagen’s (VOW3.DE) pulled back over 2% in Europe.
Read more on the planned tariffs here.
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Good morning. Here’s what’s happening today.
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Asia stocks slump
Asian markets have slumped, reversing a five-day rally, under pressure from President Donald Trump’s tariff threats and concerns over the sustainability of a $1 trillion rally in Chinese stocks.
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HSBC beats market expectations on profit, announces share buyback
HSBC (HSBC) released reports from last quarter Wednesday, with the multinational banking corporation unveiling a 6.6% rise in annual profit — beating market expectations and falling interest rates.
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Oil gains as US-Russia peace talks gain traction
Oil pushed upward Wednesday against the backdrop of the Ukraine-Russia war continuing to cause oil disruptions. Markets are poised for a quick response to the US-Russian peace talks in an evolving situation.
