Key facts
- The S&P 500 and Nasdaq Composite opened higher on Wednesday.
- Upbeat earnings from AI infrastructure companies provided support.
- The Dow Jones Industrial Average saw a slight increase at the open.
- Investors are assessing inflation data and corporate earnings.
- The S&P 500 and Nasdaq Composite had previously opened higher on Tuesday, while the Dow Jones Industrial Average fell slightly.
U.S. stock indexes opened mixed on Wednesday, with the S&P 500 and Nasdaq Composite advancing, supported by largely in-line inflation data and upbeat earnings from AI infrastructure companies. The Dow Jones Industrial Average also saw a slight increase.
Earlier in the week, on Tuesday, the S&P 500 and Nasdaq Composite had opened higher, while the Dow Jones Industrial Average fell slightly. Investors were weighing reports of a potential U.S.-Iran peace deal, with Pakistan's defence minister indicating signals of a close agreement and Qatar's foreign ministry reporting advanced Iran-Oman talks.
Technology shares faced downward pressure on Thursday, despite overall market gains. AppLovin plunged after its quarterly revenue missed expectations, and Datadog slid after warning of slowing revenue growth. Conversely, Parker-Hannifin climbed after forecasting profit above expectations, and lithium miner Albemarle rose after beating quarterly profit estimates. Most megacap stocks, including Microsoft and Amazon, advanced. SpaceX climbed ahead of its post-IPO share lock-up expiry.
Strong earnings from leading technology companies have bolstered confidence in AI investments. The Nasdaq remained approximately 3% below its all-time high. Investors were also monitoring developments related to a potential Middle East peace deal, with Brent crude trading near $80 a barrel. On the economic front, U.S. jobless claims rose slightly last week, with attention turning to Friday's July nonfarm payrolls report, which could influence expectations for the Federal Reserve's interest-rate path.