The S&P 500 added 0.6% and the Nasdaq was up 1% on Wednesday, rebounding after four consecutive sessions of losses, while the Dow Jones added more than 100 points, as investor sentiment improved amid optimism surrounding upcoming corporate earnings and economic data.
S&P and Nasdaq rebound, Nvidia in focus
The recovery was driven by gains in consumer discretionary and technology stocks, which outperformed the broader market, while consumer staples lagged.
Among individual stocks, shares of Nvidia climbed about 2.6% as investors eagerly awaited the company’s earnings report, set to be released after the closing bell. Market participants were particularly focused on whether Nvidia would address the potential impact of the DeepSeek emergence, as well as its outlook for AI-related chip demand. Intuit surged more than 12% to an eight-week high of $637.89 after delivering stronger-than-expected quarterly results, bolstered by strong performance in its TurboTax and small business segments. Meanwhile, Lowe's Companies jumped over 2% after reporting a modest 0.2% increase in same-store sales, marking its first positive growth in nearly two years and signaling potential stabilization in the home improvement retail sector.
General Motors on the rise
General Motors also saw a sharp rise, gaining over 7%, after announcing a 25% increase in its quarterly dividend, a move that underscored confidence in its financial position despite ongoing challenges in the auto industry. On the other hand, Apple shares slipped about 1% after its shareholders rejected a proposal to eliminate diversity, equity, and inclusion (DEI) programs, a topic that has sparked debate among investors and corporate governance advocates.
Eyes on key economic data
Looking ahead, traders remained focused on key economic reports, including the upcoming PCE inflation data, which could influence the Federal Reserve’s monetary policy outlook, as well as additional earnings reports that may provide further insights into corporate profitability and consumer spending trends.
