U.S. stocks ended higher on Wednesday, led by a Nasdaq rally, as shares of Apple jumped after it pledged to boost investment in domestic manufacturing, while investors assessed another batch of earnings reports. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 0.2% or 81.38 points to end at 44,193.12 points.
The S&P 500 climbed 0.7%, or 45.87 points, to finish at 6,345.06 points. Consumer discretionary, tech and consumer staples stocks were the biggest gainers.
The Consumer Discretionary Select Sector SPDR (XLY) gained 2.1%, while the Technology Select Sector SPDR (XLK) rose 1.1%. The Consumer Staples Select Sector SPDR (XLP) gained 1.4%. Six of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq advanced 1.2%, or 252.87 points, to close at 21,169.42 points.
The fear gauge CBOE Volatility Index (VIX) was down 6.05% to 16.77. Advancers outnumbered decliners on the NYSE by a 1.12-to-1 ratio. On the NYSE, there were 166 new highs and 76 new lows.
On the Nasdaq, a 1.08-to-1 ratio favored declining issues as 2,195 stocks hit new highs and 2,377 hit new lows. A total of 16.85 billion shares were traded on Wednesday, lower than the last 20-session average of 18.27 billion.
Apple Powers Market Rally
Stocks rebounded on Wednesday after suffering heavy losses in the previous session. Tech stocks once again led Tuesday’s rally, driven by a solid 5.1% jump in shares of Apple Inc. (AAPL) after the White House announced that the iPhone maker pledged to boost its domestic manufacturing investment by $100 billion.
Over the next four years, the company will be investing a total of $600 billion in the United States. Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Shares of other tech stocks also gained on Tuesday. Shares of Alphabet Inc. (GOOGL) and NVIDIA Corporation (NVDA) each gained 0.7%.
Investors Assess Earnings Reports
The earnings season is wrapping up. It has been an impressive earnings season, with results now out for nearly 400 of the total S&P 500 companies. Of these companies, around 80% have surpassed economists’ earnings estimates.
On Tuesday, investors assessed the latest batch of earnings from a slew of companies. Shares of McDonald's Corporation (MCD) ended 3% higher after the company beat earnings estimates. The company said that its affordable menu helped push global sales beyond forecasts.
McDonald's Corporation reported second-quarter 2025 earnings of $3.19 per share, beating the Zacks Consensus Estimate of $3.15 per share.
However, shares of The Walt Disney Company (DIS) declined 2.7% despite the company beating on earnings. The company reported third-quarter fiscal 2025 adjusted earnings of $1.61 per share, beating the Zacks Consensus Estimate of $1.46 per share.
This is a light week on the economic data front, and investors will be more focused on whether new trade deals are signed between the United States and its trading partners.
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Apple Inc. (AAPL): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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