Wall Street opened higher on Wednesday, reaching record highs as strong corporate earnings and easing geopolitical concerns in the Middle East buoyed investor sentiment. The S&P 500 and Dow Jones Industrial Average both hit fresh intraday highs, extending a five-day rally.
The S&P 500 rose 0.61% to 7,783.50 shortly after the opening bell. Meanwhile, the Dow advanced 450 points to 54,536.68, and the Nasdaq Composite added 0.41% to 26,694.42.
US Stocks Extend Five-Day Rally
US stocks continued their five-session winning streak, which began with renewed demand for technology and consumer shares. All three major indexes are on track for their strongest five-day performance since April 2025. Over the past week, the S&P 500 has gained more than 6%, the Dow has risen over 5%, and the Nasdaq has climbed more than 9%. In the previous session, the S&P 500 closed above 7,700 for the first time, while the Dow gained more than 900 points and secured another record close.
Market breadth remained positive during early trading. On the New York Stock Exchange, advancing stocks outnumbered declining ones by 1.26 to one, and the ratio on the Nasdaq was 1.13 to one.
Disney and Eli Lilly Lead Major Stock Moves
Disney shares rose 2.9% after the company reported better-than-expected fiscal third-quarter profit, helping lift the Dow. Eli Lilly climbed 7.3% after beating second-quarter revenue and earnings estimates and raising its full-year revenue forecast. Healthcare led the S&P 500 sectors with a 1.9% gain.
Arista Networks jumped 7.3% after forecasting third-quarter revenue above market estimates. Microsoft and Alphabet each gained about 1%, supporting the broader technology sector. However, Uber fell 5.5% after forecasting current-quarter adjusted earnings below estimates, and utilities lagged the broader market, losing nearly 1%.
According to FactSet, more than 84% of S&P 500 companies have beaten earnings estimates this season, helping investors look past weaker economic data.
SpaceX and AMD Fall as NVIDIA Rallies
SpaceX shares dropped 12.5% following its first quarterly report since its June public listing. While the company nearly doubled revenue and narrowed operating losses, a sixfold increase in capital spending to $18.4 billion, largely for AI projects and infrastructure, raised concerns. Nic Puckrin, founder of Coin Bureau, described AI spending as “getting out of hand,” adding that companies showed “no signs of slowing down anytime soon.” AMD shares fell 6.5%, despite forecasting quarterly revenue above analyst estimates, as investors expected a stronger outlook after the stock had gained 142% this year.
In contrast, NVIDIA rose 3.4% after Elon Musk confirmed that SpaceX would use its processors for AI infrastructure. Musk called NVIDIA’s product “the best AI computer” during the earnings call.
Hormuz Hopes Support Wall Street
Oil prices held near recent levels as investors monitored talks involving Iran, Oman, and the Strait of Hormuz. Brent crude rose 1% to $80.22 per barrel, while West Texas Intermediate futures gained 0.46% to $76.12. Prices rose after Houthi militants claimed an attack on a Saudi tanker in the Red Sea.
Reuters reported that Iran and Oman were discussing a framework covering inbound ship traffic through Hormuz. However, regional sources questioned claims that an agreement was close. One source noted that “the concession has already been made regarding some form of control over Hormuz,” but other details still required negotiation.
Jobs and Services Data Enter Focus
US private employers added 44,000 jobs in July, according to ADP, below June’s 95,000 increase and the 75,000 forecast. Investors now await Friday’s official nonfarm payrolls report, which could affect expectations for Federal Reserve interest-rate policy in the coming months.
Meanwhile, the ISM Services PMI reached 54.1 in July, compared with 54.0 in June, with a reading above 50 signaling expansion. The employment component fell to 47.4, its lowest level since March, while the prices index rose to 70.3, pointing to persistent service-sector inflation.
Strong corporate earnings and easing geopolitical concerns have kept Wall Street’s record-breaking rally intact despite weak hiring data. Investors now look to Friday’s nonfarm payrolls report for fresh clues on the Federal Reserve’s next policy moves, with earnings momentum and AI-driven growth remaining key drivers of market sentiment.
