Stock indexes built on early winnings in afternoon action and finished on a high note Wednesday amid news of a U.S.-Japan trade deal and progress in talks with the European Union. Meanwhile, artificial intelligence chip behemoth Nvidia rose on the stock market today ahead of two earnings reports from Magnificent Seven companies.
The Dow Jones Industrial Average surged roughly 500 points, or 1.1%, hitting its second-highest closing price ever at 45,010.29. That's just a shade below its all-time closing record of 45,014.04, reached on Dec. 4. The Dow posted an intraday record of 45,073.63 that same day.
The S&P 500 moved up 0.8%, achieving another record-high close. The Nasdaq composite rose 0.6%, besting the record close that the tech-heavy index set on Monday. Small caps on the Russell 2000 climbed 1.5%.
Stocks found support from afternoon news reports that the U.S. and the EU are working toward a deal that would set a 15% tariff on most imports. Earlier, Bloomberg reported that the EU may hit U.S. goods with a 30% levy if no agreement is reached before an Aug. 1 deadline set by President Donald Trump.
Volume was higher on the Nasdaq exchange and lower on the New York Stock Exchange compared with the same time on Tuesday. Advancers outnumbered decliners by roughly 2-to-1 on both exchanges.
The yield on the benchmark 10-year Treasury note rose to 4.38%. Crude oil ticked up to $65.45 a barrel.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
3:12 p.m. ET
Two Stocks Break Out
In stocks, Corning broke out of a consolidation base at a buy point of 55.33. Mueller Industries edged past a buy point of 86.55.
Nine of the 11 S&P 500 sectors were positive. Health and industrials gained the most while utilities and consumer staples lagged.
2:17 p.m. ET
Bessent: No Rush To Find Powell Replacement
Meanwhile, Treasury Secretary Scott Bessent told Bloomberg on Wednesday the list of candidates for replacing Federal Reserve Chairman Jerome Powell was long. But the White House is "not in a rush" to find a replacement, he said.
1:08 p.m. ET
Stock Market Today: Merck Leads, Verizon Lags
In stocks, Dow components Merck, Caterpillar and Boeing all climbed more than 2%. Travelers and Verizon lagged, but were each down less than 1%.
On Wednesday, Trump revealed an artificial intelligence action plan that would focus on accelerating innovation, building AI infrastructure in the United States and making American hardware and software the global standard.
12:39 p.m. ET
EU Prepares For 30% Tariff
Also, the European Union may slam U.S. goods worth around $117 billion with a 30% tariff if no trade deal comes through by Aug. 1, Bloomberg reported. U.S. blanket tariffs on European goods are expected to go into effect at the start of next month.
Futures: Tesla, Google Lead Big Earnings Late After S&P 500 Hits High
11:48 a.m. ET
Mortgage Applications On The Rise
On the economic front came word that mortgage applications increased. The MBA mortgage applications composite index rose 0.8% for the week ended July 18.
The purchase index increased 3.4% while the refinance index fell 2.6%. Existing home sales in June came in at 3.93 million, below consensus views of 4 million.
Also, the Atlanta Federal Reserve's business inflation expectations survey for July showed inflation estimates at 2.3% for the month, slightly below June's 2.4%.
10:48 a.m. ET
Stock Market Today: Nvidia Gains On Musk Startup News
Nvidia more than 1% rose as investors await Alphabet earnings at market close. Shares also rose following a Wall Street Journal report that Tesla Chief Executive Elon Musk's xAI startup is looking to raise up to $12 billion to buy Nvidia chips to train xAI's Grok chatbot.
Texas Instrumentssank as weak outlook for the current quarter pressured the stock. Both June-quarter sales of $4.4 billion and earnings of $1.41 per share grew 16% from the prior year and came in ahead of estimates. But for the September quarter, the company guided for midpoint earnings of $1.48 per share, below Wall Street's estimates of $1.50.
Shares fell 12% and undercut the 50-day moving average. The stock also triggered the 7% sell rule as its fell below a buy point of 220.38.
Elsewhere, Enphase got turned away at the 50-day moving average after growth decelerated in the second quarter. The solar company announced earnings of 69 cents per share on sales of $363.2 million. Midpoint sales guidance of $350 million for the third quarter missed estimates of $364.3 million. Enphase also noted that tariffs could also hurt gross margins.
Tariffs and a weak U.S. dollar hurt enterprise software company SAP's outlook. Earnings of $1.76 per share topped estimates while sales of $10.57 billion met views. Shares fell below the 50-day moving average on Wednesday.
9:40 a.m. ET
Yields Rise As Oil Slips
The 10-year Treasury yield ticked higher to 4.38%. Oil prices dropped with West Texas Intermediate futures selling around $65.20 a barrel.
9:11 a.m. ET
Dow Jones Movers: Nvidia Rallies
Inside the Dow Jones index, JPMorgan Chase, Merck and Nvidia were among the biggest gainers on the stock market today.
JPMorgan stock climbed 0.7%, trading just shy of a new high, while Merck added 0.9%. Nvidia stock rallied 1.1% in premarket trading, looking to bounce back from Tuesday's 2.5% drop.
8:36 a.m. ET
Stock Market Today: Alphabet, Tesla Earnings Due
Alphabet and Tesla are set to report second-quarter earnings results after the market close Wednesday.
Search giant Alphabet slipped by 0.3% premarket Wednesday, threatening to snap a 10-day win streak that saw the stock break out past a 181.23 buy point.
Meanwhile, Tesla stock lost 0.2% in morning action. Shares regained their 50-day moving average in recent sessions and are building a base with a 367.71 buy point.
7:57 a.m. ET
Earnings Movers: AT&T, GE Vernova
AT&T stock tumbled more than 3% in premarket trading, even after the company better-than-expected results for its second quarter. Investors may have been expecting an outlook boost after Verizon Communications raised its own forecast on Monday.
Other key earnings movers Wednesday included Boston Scientific, GE Vernova and General Dynamics.
Boston Scientific shares rallied more than 2%. GE Vernova stock jumped nearly 4%. And General Dynamics moved up almost 3% in early morning action.
Stock Market Today: Trump Announces Japan Trade Deal
President Donald Trump announced late Tuesday on Truth Social a "massive" trade deal with Japan. The U.S. will impose a 15% tariff on Japanese goods, though that's less than the 25% tariff he had threatened earlier this month.
The 15% duty also will apply to the auto sector, instead of the 25% global auto tariff, Prime Minister Shigeru Ishiba said. Around 80% of Japan's trade surplus with the U.S. is in autos and parts.
Trump says Japan will take steps to open up its market to U.S. autos, rice and more. Japan also will invest $550 billion in the U.S., Trump said, as well as buy 100 Boeing jets. Boeing stock climbed 0.6% in premarket trading.
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