Market Momentum Shifts as Earnings Season Heats Up
The US stock market experienced a mixed bag on Wednesday, with the Dow Jones Industrial Average rising over 150 points, or 0.4%, while the Nasdaq Composite slipped 0.2%. The S&P 500 remained near flat, as investors digested a slew of earnings reports from major companies.
Morgan Stanley Leads the Charge
Morgan Stanley’s quarterly report showed a significant surge in profits, driven by a rise in dealmaking and trading activity. Shares of the bank jumped over 7% following the release, boosting investor confidence in the Wall Street comeback.
Earnings Season Continues
Other notable earnings reports included UnitedHealth Group, LVMH, and ASML, which disappointed investors with a deep cut to its 2025 sales forecast. Meanwhile, Abbott, Alcoa, and Discover Financial Services are set to release their earnings on Wednesday.
Gold Rallies Amid Tariff Uncertainty
Gold prices rallied towards a record high, fueled by uncertainty surrounding the outcome of the US presidential race and fresh tariff promises from Republican nominee Donald Trump.
Small-Cap Stocks Shine
The small-cap Russell 2000 index surged over 1.5%, outpacing the gains of the three major indexes and closing in on its 52-week high of 2,300. Strategists argue that lower interest rates will benefit small-caps, which have higher exposure to refinancing risk.
Airlines Take Off
The US global Jets ETF rose around 3% to hit a fresh 52-week high, driven by a better-than-expected earnings report from United Airlines. The carrier’s stock rose over 9% in morning trade on Wednesday.
Nuclear Power Partnership
Amazon and Dominion Energy announced a partnership to advance the development of nuclear Small Modular Reactors in Virginia, marking the latest move by big tech companies to explore nuclear energy.
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