A gain of 0.1% was recorded by the S&P 500, while the Nasdaq experienced an increase of 0.57%. In contrast, a decline of 0.21% was observed in the Dow Jones Industrial Average.
A mixed close was recorded by U.S. stock markets on Wednesday, as a rally—fueled by reduced trade tensions between the U.S. and China—was extended by investors.
The gains were led by technology stocks. A rise of over 3% was posted by Nvidia after it revealed plans to deliver 18,000 AI chips to Saudi Arabia. AMD saw an increase of more than 4% following the announcement of a $6 billion share repurchase. For the week so far, the Nasdaq has risen by over 6%, while the S&P 500 and Dow have advanced by 4% and 1%, respectively.
Favorable Headlines Out of China
A continued positive response was shown by markets to the weekend agreement between the U.S. and China, under which tariffs were temporarily reduced.
Tariffs on Chinese products were lowered to 30% by the U.S., while China reduced its duties on American imports to 10%. The S&P 500, which had previously been in negative territory for the year, has now shifted into positive territory, rising by over 21% from its low point in April.
However, it has been cautioned by analysts that the rally might stall in the absence of additional policy measures. According to CNBC, Daniel Skelly of Morgan Stanley stated that “the next upward move will likely be delayed until policy initiatives are introduced that can generate momentum heading into 2026.”
In terms of individual stock movements, a nearly 29% increase was recorded by eToro during its debut on the Nasdaq. Super Micro Computer advanced by 17%, extending prior gains associated with a $20 billion data center agreement with Saudi Arabia. A 2% rise was seen in Boeing shares following the announcement of a $96 billion aircraft deal with Qatar Airways.
At the same time, signs of overheating were observed in Tesla’s recent rally. Technical indicators pointing to potential short-term price pressure were highlighted by S3 Partners.
