US stocks rose on Wednesday to eye fresh records, with hopes for a China boost to Nvidia (NVDA) buoying techs in the wait for the Federal Reserve to confirm bets on an interest-rate cut.
The S&P 500 (^GSPC) rose 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) gained roughly 0.7%, following a strong session that lifted stocks to fresh all-time highs. The Dow Jones Industrial Average (^DJI), which includes fewer tech names, also nudged up 0.3%.
Markets are in wait-and-see mode ahead of Wednesday’s Fed decision. The central bank is widely expected to deliver a quarter-point rate cut, its first since July, as investors watch closely for any hints from Chair Jerome Powell about the pace of additional easing.
Meanwhile, Nvidia’s (NVDA) stock jumped after President Trump stoked optimism for an easing in the curbs that have weighed on its sales in China. Trump said he may bring up Nvidia’s Blackwell AI processors in his highly anticipated meeting with Chinese President Xi on Thursday.
The gains pushed the AI chipmaker’s market value above $5 trillion, making it the first company in history to pass that milestone. The upswing comes after Nvidia shares closed at a record high on Tuesday as investors welcomed a flood of announcements from its GTC event.
The countdown is now on for earnings from “Magnificent Seven” tech megacaps, led out after the bell on Wednesday by reports from Alphabet (GOOG), Meta Platforms (META), and Microsoft (MSFT). Quarterly results from Apple (AAPL) and Amazon (AMZN) follow on Thursday.
Analysts expect another round of hefty data center spending, though the focus will be on how much continued investments in AI are paying off. Any disappointment could drag on the broader market.
LIVE 11 updates
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The next chapter in OpenAI’s dealmaking frees it to make even more
It didn’t take long for OpenAI (OPAI.PVT) to get out from under Microsoft’s (MSFT) shadow, writes Yahoo Finance’s Hamza Shaban.
He reports in today’s Morning Brief:
Read more here.
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Stocks rise at the open, eye fresh records
US stocks rose at the market open on Wednesday, headed toward fresh record closing highs.
The S&P 500 (^GSPC) added 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) gained roughly 0.7%. The Dow Jones Industrial Average (^DJI), which includes fewer tech names, also nudged up 0.3%.
Stocks rose as investors awaited a policy decision from the Federal Reserve later in the day, amid high expectations for an interest-rate cut The Nasdaq led gains as Nvidia (NVDA) shares climbed, making the AI chipmaker the first $5 trillion company in history.
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Etsy taps insider as new CEO. The stock is tumbling.
Etsy (ETSY) stock dropped about 9% in premarket trading after the online marketplace announced a shake-up in its C-suite.
Etsy has tapped its current president and chief growth officer, Kruti Patel Goyal, to lead the company, replacing Josh Silverman, effective January 1. Silverman, who has been with the company for eight years, will transition to the executive chair role until his departure.
The company also said its board chair, Fred Wilson, who has served in that role since 2017, will step down as chairman but will continue to serve on Etsy’s board.
Also on Wednesday, Etsy reported third quarter earnings that beat on the top and bottom lines, though slowing demand hurt the company’s core sales. Read live coverage of corporate earnings here.
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Boeing posts Q3 revenue beat, improving cash flow burn rate as turnaround plan takes off
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Trump’s team touts ‘deal framework’ with China. It’s unclear what China will demand in return.
Yahoo Finance’s Ben Werschkul reports:
Read more here.
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Good morning. Here’s what’s happening today.
Please note some economic data will not be released due to the shutdown.
Economic data: MBA mortgage applications (week ended October 24); Wholesale inventories, (September preliminary reading); Advance goods trade balance (September); Retail inventories,(September); Pending home sales (September); Pending home sales (September); FOMC rate decision
Earnings calendar: Microsoft (MSFT), Alphabet (GOOG), Meta (META), Caterpillar (CAT), ServiceNow (NOW), Boeing (BA), Verizon (VZ), KLA Corporation (KLAC), Banco Santander (SAN), UBS Group (UBS), Automatic Data Processing (ADP), CVS (CVS), Starbucks (SBUX), Equinix (EQIX), Agnico Eagle Mines (AEM), Fiserv (FI), American Electric Power Company (AEP), Equinor (EQNR), Chipotle (CMG), Phillips 66 (PSX), eBay (EBAY), Entergy Corporation (ETR), Carvana (CVNA), Prudential (PRU), Kraft Heinz (KHC), American Water Works Company (AWK)
Here are some of the biggest stories you may have missed overnight and early this morning:
Nvidia jumps as Trump fuels hopes for China Blackwell sales
One big question hangs over Trump’s vaunted China deal
Trump seeks to cut fentanyl tariff, discuss Nvidia in Xi talks
The Fed’s decision is on deck. Here’s what to expect.
Trump lambasts Fed’s Powell again over interest-rate cuts
Why OpenAI is now closer to becoming ‘Magnificent’
Boeing beats on Q3 revenue as turnaround plan takes off
Verizon beats estimates for quarterly subscriber additions, profit
US and South Korea seal trade deal
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Big Tech’s earnings will focus on AI and iPhones
Big Tech’s earnings season gets going in earnest on Wednesday and Thursday. It all adds up to one of the biggest tests of the year for the tech industry, among the most important weeks for tech investors and analysts alike.
Yahoo Finance’s Daniel Howley lays out what to watch, and what to expect:
Read more here.
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Under-the-radar AI plays
I have been thinking all morning long about under-the-radar plays on the hot AI trade. That doesn’t appear to be slowing down, as we are being reminded by Nvidia (NVDA) being on the cusp of a $5 trillion market cap.
I am asking all CEOs — regardless of the industry — how they are partaking in the AI boom. I just got off the phone with the CEO of elevator giant Otis (OTIS), Judy Marks, and she said this that I hadn’t thought of:
“The only way to move servers between two or three storeys is with a heavy-duty elevator. So it’s a heavy-duty elevator. They obviously can take passengers, but it’s really used to move racks and servers.”
Good point!
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Nvidia stock gains as Trump fuels hopes of China Blackwell sales
Shares in Nvidia climbed almost 4% in premarket, poised to build on Tuesday’s record close and make the AI chipmaker the first company to top $5 trillion in market value.
Bloomberg reports:
Read more here.
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Premarket trending tickers: Verizon, TE Connectivity and Teradyne
Verizon (VZ) shares rose 2% before the bell on Wednesday after beating Wall Street estimates for quarterly profit and wireless subscriber additions, as promotions around the recent iPhone launches helped the U.S. wireless service provider attract more customers.
TE Connectivity plc (TEL) stock rose 7% in premarket trading after issuing upbeat first-quarter earnings that beat estimates.
Teradyne (TER) shares jumped 21% before the bell on Wednesday after announcing it expects a 27% jump in sales in the fourth quarter as “AI-related test demand remains robust across compute, networking and memory segments.”
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Oil holds after multi-day drop as Russian sanctions impact price
Oil prices remained stable after a three-day decline, driven by geopolitical tensions and uncertainty over the current US stockpile inventory.
Bloomberg reports:
Read more here.
