Apple’s $100B Manufacturing Plan Sparks Optimism
U.S. stocks advanced on Wednesday, driven by a tech-led rally that lifted the Nasdaq more than 1%. Apple shares surged 5.8%, providing the largest boost to all major indexes following reports that the company is set to announce a $100 billion domestic manufacturing pledge. A White House official confirmed the upcoming announcement, adding to investor enthusiasm.
Apple’s rise helped push the Nasdaq Composite up 254.12 points, or 1.22%, to 21,170.67. The S&P 500 gained 49.86 points, or 0.79%, to close at 6,349.05, while the Dow Jones Industrial Average rose 140.32 points, or 0.32%, to 44,252.06.
Corporate Earnings Fuel Market Confidence
Strong corporate earnings continued to support market sentiment. McDonald’s shares rose 3.6% after reporting that its value-focused menu helped global sales surpass expectations. Arista Networks jumped 18% after the cloud networking firm projected revenue above analysts’ forecasts for the current quarter.
Sam Stovall, chief investment strategist at CFRA Research, noted that earnings are outperforming expectations and investors remain optimistic despite uncertainty over global tariffs. Notably, President Donald Trump imposed a new 25% tariff on Indian goods, citing India’s continued purchases of Russian oil.
Rate Cut Bets Strengthen on Slowing Jobs Data
Market sentiment was further lifted by growing expectations of interest rate cuts. Last week’s jobs report indicated slowing employment growth, with downward revisions for earlier months. The probability of a rate cut in September surged to 93.2%, up from 46.7% a week earlier, according to CME Group’s FedWatch tool. Traders are also pricing in at least two rate cuts by the end of 2025.
Despite broader gains, shares of Advanced Micro Devices fell 5.4% after disappointing data center chip revenue. Walt Disney, which posted strong Q3 results and raised its full-year guidance, saw its shares slip 2%.
Market Breadth Mixed Across Exchanges
Market breadth was positive on the New York Stock Exchange, where advancing issues outpaced decliners by a 1.1-to-1 ratio. The NYSE recorded 145 new highs and 65 new lows. However, on the Nasdaq, decliners outnumbered advancers by a 1.17-to-1 margin, with 2,410 stocks falling compared to 2,057 rising.
