Dow pops more than 200 points after Trump announces Japan trade deal: Live updates

Stocks rose on Wednesday as the latest trade developments spurred optimism on Wall Street that the U.S. would reach more deals before its impending tariff deadline.

The Dow Jones Industrial Average added 507.85 points, or 1.14%, ending at 45,010.29 and missing a record close by about four points. The S&P 500 climbed 0.78% for a record close of 6,358.91 — its 12th of the year. The broad-market index also hit a new all-time intraday high in the session. The Nasdaq Composite rose 0.61%, settling at 21,020.02 — its first close above the 21,000 threshold.

Trump said in a Truth Social post Tuesday night that the U.S. had completed a “massive Deal” with Japan. The agreement includes “reciprocal” tariffs of 15% on the nation’s exports to the U.S. The president also said the U.S. is meeting with European officials in a push to reach a trade deal with the European Union.

Stocks received a bit of a boost later Wednesday after the Financial Times reported that the U.S. is closing in on a 15% tariff agreement with the European Union, saying that it would echo the U.S.-Japan deal. Bloomberg also confirmed the progress between the U.S. and the EU, citing diplomats briefed on the negotiations.

The U.S. has been looking to reach trade deals with other countries ahead of an Aug. 1 deadline. Earlier this week, the White House revealed that the U.S. and Indonesia agreed to the framework of a trade agreement. That follows a number of other trade agreements the U.S. has reached with other countries, including China and the United Kingdom.

The developments come after Trump on April 2 sent markets into turmoil, with his announcement of sweeping levies that he then pushed off.

“So far, the tariff strategy Trump is pursuing looks very inspired, generating serious income, resulting in major investments in the U.S. to avoid the tariffs, and has yet to cause the disruptions and inflation that the naysayers said were certain,” said Louis Navellier, founder and chief investment officer at Navellier & Associates. “The stock market certainly reflects no fear of negative consequences.”

Wednesday’s moves follow a second straight day concluding at a high for the S&P 500.

The run to new highs has sparked so-called animal spirits on Wall Street, with shares of small companies with brand names and questionable finances getting a bid higher. Kohl’s surged on Tuesday, and GoPro and Krispy Kreme jumped on Wednesday.

Investors are awaiting earnings from Alphabet and Tesla expected Wednesday after the bell. They are the first reports of the earnings season from the megacap technology sector, a group that’s been closely watched given its market leadership in recent years.

Stocks finish Wednesday’s session in the green

Stocks ended the session higher on Wednesday, with the S&P 500 finishing with its third consecutive record closing high this week.

The broad market index gained 0.78% to close at 6,358.91.

Additionally, the blue-chip Dow Jones Industrial Average moved 507.85 points higher, or 1.14%, to end the session at 45,010.29. The tech-heavy Nasdaq Composite also jumped 0.61% to finish at 21,020.02, its first close above the 21,000 level.

— Sean Conlon

42 stocks in the S&P 500 trade at new 52-week highs

During Wednesday’s trading session, 42 stocks in the S&P 500 traded at new 52-week highs.

Stocks that hit this milestone included:

• Ulta Beauty trading at levels not seen since April 2024
• Dollar Tree trading at levels not seen since June 2024
• Ralph Lauren trading at all-time highs back to its IPO in June 1997
• Carnival trading at levels not seen since June 2021
• Ebay trading at all-time high levels back to its IPO in September 1998
• Citigroup trading at levels not seen since November 2008 (but currently trading negative on session)
• GE Vernova trading at all-time highs back to its spin-off from GE in April 2024
• L3Harris Technologies trading at levels not seen since March 2022
• Boston Scientific trading at all-time high levels back to its IPO in May 1992
• Warner Bros. Discovery trading at levels not seen since August 2023

On the other hand, two stocks in the benchmark reached new 52-week lows: Otis Worldwide and Fiserv.

— Lisa Kailai Han

Maybe winds are shifting and it’s finally time for small caps to beat large caps

This could always prove another head fake, but small capitalization U.S. stocks have recently been beating their large cap brethren. By midday trading Wednesday, the Russell 2000 index of small stocks was beating the S&P 500 so far this week 1.57% to 0.9%. Over the seven days, the Russell is higher by 2.17%, better than the S&P 500’s 1.44% gain.

In July alone, small caps are up 4.62% while large caps have gained 2.4%. But even over the past three months, small stocks are ahead 18.58% while large stocks are up 18.18%.

Thanks to a miserable start to the year through President Trump’s unveiling of higher tariffs in early April, large caps are still beating small caps so far in 2025, 8.02% to 2.04%. But maybe the winds are shifting.

— Scott Schnipper

U.S.-Japan trade deal could hurt Japan’s economy, UBS says

Although the trade deal between the U.S. and Japan turned out to be better than the market expected, it might still cause some damage to Japan’s economy, according to UBS.

“The 15% tariff will still likely lead to declines in exports and corporate earnings, and the resulting stagnation in capital investment and consumption will likely continue to exert downward pressure on the Japanese economy by about 0.4 percentage points year over year, in our view,” analyst Chisa Kobayashi wrote on Wednesday.

Along with that, Kobayashi said that she does not expect the Bank of Japan to hike interest rates this year, adding that she anticipates that the next rate hike will be “only be after mid-2026.”

— Sean Conlon

UBS sees Berkshire Hathaway rallying more than 20% from here

Berkshire Hathaway could be set to see sizable share gains over the coming months, UBS said on Wednesday.

Analyst Brian Meredith, who has a buy rating on the name, hiked his price target on the Omaha-based conglomerate’s A shares to to $892,120 from $887,099 and its B shares to $595 from $591. From Tuesday’s close, that implies 24.8% upside for the A shares and 24.4% upside for the B shares.

Heading into Berkshire’s scheduled second-quarter earnings results in the coming weeks, Meredith raised his earnings estimates, a move that he said was “largely driven by the insurance business, with a better expense ratio at GEICO and lower catastrophe losses for BH Re.” The analyst also said that he expects “no share buybacks in the following quarters” and finds that shares are currently “trading at a modest premium.”

The move comes as both Berkshire’s A and B shares have underperformed the broader market year to date, with its A shares gaining more than 5% and its B shares rising about 5%. The S&P 500, by comparison, has advanced more than 7% in 2025.

— Sean Conlon

GE Vernova, GoPro, Krispy Kreme, Lamb Weston among the stocks making midday moves

Check out the stocks making moves in midday trading Wednesday:

• GE Vernova — Shares jumped 14% as strong power demand outweighed the effect of President Donald Trump’s tariffs. GE Vernova has raised its full-year guidance after a strong first half and said the tariff impact will likely come in at the low end of $300 million to $400 million.
• GoPro, Krispy Kreme — Reddit-obsessed retail traders found their new targets Wednesday, pushing up shares of wearable camera firm GoPro and doughnut maker Krispy Kreme by 21% and 8%, respectively. The so-called short squeeze could be at play as they both have elevated levels of short interest. The two stocks are heavily cited on Wall Street Bets, the online forum behind the infamous GameStop mania in 2021.
• Lamb Weston — The french fry producer surged 16% after reporting a fiscal fourth-quarter earnings and revenue beat. Lamb Weston posted adjusted earnings of 87 cents per share on revenue of $1.68 billion, exceeding the earnings of 63 cents per share and $1.59 billion in revenue analysts had expected, per FactSet. The company also introduced a cost-savings program aiming to deliver at least $250 million in annualized run rate savings by the end of fiscal 2028.

Read here for the full list.

— Christina Cheddar Berk

S&P 500 hits new intraday high

During Wednesday’s trading session, the S&P 500 hit another new record high.

The benchmark was last trading 0.5% higher on the day.

If the S&P 500 closes with another gain, this would mark its 12th record close of 2025.

— Nick Wells, Lisa Kailai Han

U.S. and EU reportedly nearing 15% tariff agreement

The U.S. and the European Union are getting closer to a trade deal that would impose 15% tariffs on imported goods coming to the U.S. from Europe, the Financial Times reported Wednesday, citing three people familiar with the situation.

The report said that the EU could agree to the duties to avoid President Donald Trump’s threat of increasing levies on the bloc to 30%, effective Aug. 1.

The deal would waive tariffs on certain products – such as aircraft, spirits and medical devices – for both countries, according to the people.

— Sean Conlon

Stats for Alphabet, Tesla, IBM ahead of this afternoon’s earnings

Tech stalwarts Alphabet, Tesla and IBM will all report their earnings after Wednesday’s bell.

Ahead of these reports, here are some stats on each of the stocks.

Alphabet

• Alphabet is on track to snap a 10-day win streak
• Shares are on pace to notch their fifth positive week and their fourth positive month in a row
• According to FactSet, the average price target on Alphabet is $204.68, suggesting 8% upside
• According to VettaFi, 414 ETFs have Alphabet within their top 15 holdings

Tesla

• Tesla is currently trading at its highest level in a month
• Shares are on pace to post their first back-to-back weekly gains since mid-May
• According to FactSet, the average price target on Tesla is $313.66, suggesting 6% downside
• According to VettaFi, 262 ETFs have Tesla within their top 15 holdings

International Business Machines

• IBM is currently pacing for its third negative week in the past 10
• Shares are less than 4% off their highs of the year
• According to FactSet, the average price target on IBM is $280.29, suggesting 2% downside
• According to VettaFi, 101 ETFs have IBM within its top 15 holdings

— Adrian van Hauwermeiren, Lisa Kailai Han

Volatility could be in store for the market amid ‘growing air of complacency,’ JPMorgan warns

The market could be positioned for volatility in the second half of the year, as signs of complacency have begun to appear, according to JPMorgan.

“Global equity prices reside at their all-time highs, yet consensus global EPS downgrades are plentiful,” a team of quantitative strategists led by Khuram Chaudhry wrote on Wednesday, adding that net global earnings revisions have fallen 14.3% in the past month and 18.7% in the last three months. “There appears to be an environment of bullish sentiment, speculation, and a growing air of complacency. Either sell-side analysts are about to start a new round of upward revisions or the market is at risk of suffering a period of increased volatility and draw-downs. Something has to give!”

“The U.S. market is thriving on sectors like Technology and the ‘Magnificent 7’ stocks, fueled by the Generative AI trend, yet cracks and volatility are increasingly likely in H2,” the team also wrote. “Investors should be on the lookout for a potential market rotation!”

— Sean Conlon

Lockheed Martin’s valuation has ‘become too cheap to ignore,” Morgan Stanley says

Morgan Stanley thinks Lockheed Martin is getting hit far too hard as several growth opportunities remain ahead.

“We still see a number of bright spots in LMT’s portfolio (e.g., missiles / missile defense) and significant opportunities ahead (e.g., Golden Dome, F-35 internationally), and think the stock reflects attractive value,” analyst Kristine Liwag said in a Wednesday note to clients.

“Valuation, however, for the largest US Defense pureplay has become too cheap to ignore at a time when global budgets are accelerating,” the analyst added.

Liwag on Wednesday reiterated her overweight rating on the defense giant while lowering her price target by $45 to $530 to reflect updated management commentary and earnings expectations. Still, her target implies the stock, which is down roughly 15.5% this year, could jump 29%.

— Pia Singh

Existing home sales slid 2.7% in June, more than expected

The housing market was hit with more bad news Wednesday as sales numbers posted an unexpectedly sharp drop.

Existing home sales fell 2.7% in June against the Dow Jones consensus expectation for a decline of 0.7%, the National Association of Realtors reported. That translated to a seasonally adjusted rate of 3.93 million, below the forecast for 4 million.

While sales lagged, prices rose. The median sales price climbed 2% from a year ago to $435,300, the highest ever for the month of June.

“Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth,” said NAR chief economist Lawrence Yun, who added that high mortgage rates also are hitting sales.

— Jeff Cox

Meme traders send shares of GoPro and Krispy Kreme higher Wednesday

Shares of wearable camera firm GoPro and doughnut maker Krispy Kreme rose more than 49% and more than 20% in morning trading on Wednesday, as Reddit-obsessed retail traders eyed the two names.

Meme traders also appeared to ditch shares of Kohl’s Wednesday, as the stock fell more than 14% during the day on the heels of surging more than 37% Tuesday.

The moves come just a day after meme traders dumped shares of Opendoor Technologies, which dropped more than 10% Tuesday after multiple days of double-digit-percentage gains.

— Yun Li, Sean Conlon

Stocks open in positive territory Wednesday

Stocks traded up on Wednesday morning.

The Dow Jones Industrial Average jumped 277 points, or 0.6%, just after 9:30 a.m. ET. The S&P 500 advanced 0.3%, while the Nasdaq Composite gained 0.1%.

— Sean Conlon

GE Vernova shares jump as strong power demand blunts tariff impact

GE Vernova shares jumped about 7% in the premarket after the company raised its full-year guidance, as strong power demand blunts the impact of President Donald Trump’s tariffs.

GE Vernova now sees revenue trending toward the higher end of its guidance of $36 billion to $37 billion, raised the low end of its margin for earnings before interest, tax, depreciation and amortization, and bumped its free cash flow outlook to between $3 billion and $3.5 billion.

The guidance includes the impact of Trump’s tariffs, which GE Vernova now expects to be on the low end of $300 million to $400 million this year.

— Spencer Kimball

Seaport upgrades homebuilder Toll Brothers to buy rating from neutral

In a Tuesday note, Seaport Research Partners upgraded homebuilder stock Toll Brothers to a buy rating from neutral.

Shares have added less than 0.1% this year, but analyst Kenneth Zener’s $161 price target implies the stock could rise 27% from its Tuesday close.

The analyst said that the overall backdrop for homebuilding stocks now looks better, with peak new supply falling and margin pressures easing. Toll Brother’s efforts to improve its business should also offer more promising returns going forward.

“We think TOL’s ongoing focus to improve ROI/ROE, by lessening slower turning land assets, and elevated community pace via entry-level luxury, and pre-starting homes before backlog (only mid-teens % of closings are intra-quarter sales, our spec definition), dramatically elevate returns vs its past,” Zenner wrote. “With 47% of EBIT from the West, and less than peer exposure to FL/TX, we think its affluent customer mix, remains favorable, given its more niche product offering.”

— Lisa Kailai Han

Hilton, Hasbro, SAP among the stocks making moves before the bell

There are some stocks making meaningful premarket moves on Wednesday:

• Hilton Worldwide — The hotel stock slipped nearly 2% despite Hilton posting a second-quarter earnings and revenue beat. Hilton reported adjusted earnings of $2.20 per share on revenue of $3.14 billion, while analysts polled by LSEG had expected earnings of $2.04 and $3.10 billion in revenue. The company also raised its full-year earnings guidance to between $7.83 to $8.00 per share, versus its prior range of between $7.76 and $7.94.
• Hasbro — Shares traded 3% higher in the premarket after the toymaker reported second-quarter results that beat analyst expectations. The company earned an adjusted $1.30 per share on revenue of $980.8 million. Analysts expected a profit of 78 cents per share on revenue of $880 million, according to LSEG. Hasbro also raised its full-year earnings guidance, “fueled by performance in our Wizards business,” CFO Gina Goetter said in a statement.
• SAP — U.S.-listed shares of the enterprise software company fell 4.2%. The company posted 9.03 billion euros for second-quarter revenue, missing the LSEG consensus estimate of 9.08 billion euros.

Read the full list of stocks here.

— Yun Li

Texas Instruments shares tumble on soft outlook

Shares of Texas Instruments plummeted more than 10% in the premarket Wednesday after the chipmaker posted a disappointing third-quarter forecast.

Texas Instruments sees its earnings for the period coming in between $1.36 and $1.60 per share. At the midpoint, that guidance was below the $1.50 per share that analysts surveyed by LSEG had estimated.

However, the company’s second-quarter earnings and revenue beat Wall Street’s expectations, posting $1.41 per share on $4.45 billion in revenue. That’s compared to the consensus estimate of $1.35 per share on $4.36 billion in revenue.

— Sean Conlon

Hasbro shares rise after earnings beat

Hasbro traded 3% higher in the premarket after the toymaker reported second-quarter results that beat analyst expectations.

The company earned an adjusted $1.30 per share on revenue of $980.8 million. Analysts expected a profit of 78 cents per share on revenue of $880 million, according to LSEG.

Hasbro also raised its full-year earnings guidance, “fueled by performance in our Wizards business,” CFO Gina Goetter said in a statement. “Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook.”

— Fred Imbert

Honda, Toyota shares rally on U.S.-Japan trade deal announcement

U.S.-listed shares of Honda Motor and Toyota popped in the premarket after Trump announced a trade deal between the U.S. and Japan.

Honda traded 11% higher, while Toyota jumped nearly 13%.

— Fred Imbert

U.S. stock futures turn slightly higher after Trump announces trade deal with Japan

U.S. stock futures turned slightly higher on Tuesday night after President Donald Trump announced a “massive” trade deal with Japan.

S&P 500 futures last traded around 0.1%, while Dow futures advanced 92 points, or 0.2%. Nasdaq 100 futures were near flat.

Trump posted about the development on Truth Social, saying that as part of the agreement, Japanese goods will be subject to a 15% “reciprocal” tariff.

Read more about the deal from CNBC’s Lim Hui Jie here.

— Darla Mercado

Health care, a 2025 laggard, puts up a strong showing Tuesday

The sleepy health-care sector, which is off 3% in 2025, was the big winner on Tuesday.

Health care rose 1.9% on Tuesday while investors took a step back from tech names. The information technology sector lost 1% during the session, dragged lower by losses in Nvidia and Broadcom.

IQVIA emerged as the leader in the health-care sector on Tuesday, leaping nearly 18% and posting its best day ever – dating back to its 2013 initial public offering as Quintiles. Shares of the health information technology company rose on the heels of a second-quarter beat on the top and bottom lines.

Charles River Laboratories and Quest Diagnostics also posted solid performances in the session, up 9% and 7%, respectively.

— Darla Mercado, Gina Francolla

See the stocks moving after hours

These are some of the stocks making notable moves after hours:

• Texas Instruments — The maker of analog and embedded processing chips tumbled more than 9% after second-quarter sales and earnings topped Wall Street estimates, while the low end of third-quarter guidance fell short. The stock had soared 46% over the past three months before the results.
• CoStar Group — Shares of the online real estate marketplace rose 1% after the company reported better-than-expected earnings for the second quarter. CoStar earned 17 cents per share, excluding items, on $781.3 million in revenue, while analysts polled by FactSet anticipated 14 cents per share and $772.2 million in revenue.
• Enphase Energy — Shares slid more than 5%. Despite earnings for the second quarter topping Wall Street expectations, the company said to expect current-quarter revenue between $330 million and $370 million versus a consensus estimate of $368 million from analysts polled by LSEG.

Click here for the full list.

— Alex Harring

Stock futures are near flat

Stock futures tied to the Dow, S&P 500 and Nasdaq 100 were all little changed shortly after 6 p.m. ET.

— Alex Harring