Most U.S. stocks ended higher on Wednesday after a day of volatile trading on Wall Street. The S&P 500 closed up 0.4%, recovering from an earlier surge and subsequent drop before climbing again. The Nasdaq composite rose 0.7% after fluctuating between a loss of 0.4% and a gain of 1.4%. The Dow Jones Industrial Average finished down by 17 points, or less than 0.1%.
This instability followed Tuesday’s sharp swings, where the Dow moved between a loss of 615 points and a gain of 455 points. These market fluctuations began late last week when President Donald Trump announced the possibility of much higher tariffs on China, disrupting what had been a period of relative calm for investors.
Technology shares were among the main drivers behind Wednesday’s gains, boosted by ASML’s better-than-expected profit report. ASML, which supplies equipment to semiconductor companies, projected its revenue for 2025 would be 15% higher than last year and said next year’s revenue should at least match this year’s level.
“On the market side, we have seen continued positive momentum around investments in AI,” CEO Christophe Fouquet said, “and have also seen this extending to more customers.” He noted that this is important amid concerns about overinvestment in artificial intelligence similar to the dot-com bubble in 2000.
ASML shares rose by 3.1% in Amsterdam trading. In the U.S., Broadcom was up by 2.1%, and Advanced Micro Devices jumped by 9.4%, making them two key contributors to the S&P 500’s performance.
Major banks also supported the market rally. Bank of America gained 4.4% after reporting quarterly profits that exceeded analysts’ expectations; CEO Brian Moynihan stated that all areas of business showed growth. Morgan Stanley climbed by 4.8% following another stronger-than-expected profit report, continuing a trend set by JPMorgan Chase and Wells Fargo earlier in the week.
However, PNC Financial fell by 3.9%. While it reported better-than-expected profits for the quarter, its outlook for future earnings disappointed some analysts.
Abbott Laboratories declined by 2.4% after its latest quarterly revenue narrowly missed analyst forecasts.
At closing, the S&P 500 added 26.75 points to reach 6,671.06; the Dow slipped by 17.15 points to end at 46,253.31; and the Nasdaq composite increased by 148.38 points to close at 22,670.08.
The recent rally has put pressure on companies to justify their stock prices with strong earnings reports as stock values have risen about 35% since April lows.
Investors are paying close attention to corporate results for signs about economic health because government data releases—including inflation figures—have been delayed due to a federal shutdown.
This lack of official economic data complicates efforts by Federal Reserve officials who must assess whether high inflation or slowing job growth poses greater risks for the economy.
Last month, the Federal Reserve reduced its benchmark interest rate for the first time this year and suggested further cuts could follow to support employment growth—a move that can also increase inflation if rates remain too low above their target level of around two percent.
Comments made Tuesday by Fed Chair Jerome Powell suggested additional rate reductions may be considered soon.
In bond markets, yields on ten-year Treasury notes remained steady at about four percent (4.03%).
Gold prices rose nearly one percent (0.9%) above $4,200 per ounce amid expectations for lower interest rates ahead; gold has climbed almost sixty percent so far this year as investors seek protection against trade conflicts, military tensions, and concerns over rising government debt worldwide.
Internationally, European markets were mixed while Asian indexes mostly advanced: South Korea’s Kospi index surged nearly three percent (2.7%), and France’s CAC forty gained two percent (2%).
