Wall Street Hits Record Highs as Strong Earnings Extend Five-Day Rally

Wall Street opened higher on Wednesday as strong earnings and easing Middle East concerns supported demand for US stocks. The S&P 500 and Dow Jones Industrial Average reached fresh intraday records.

The S&P 500 gained 0.61% to 7,783.50 shortly after the opening bell. Meanwhile, the Dow advanced 450 points to 54,536.68. The Nasdaq Composite added 0.41% to 26,694.42.

US Stocks Extend Five-Day Rally

US stocks extended a five-session rally that began after renewed demand for technology and consumer shares. All three major indexes headed for their strongest five-day performance since April 2025.

The S&P 500 has gained more than 6% over the past week. The Dow has risen over 5%, while the Nasdaq has climbed more than 9%.

In the previous session, the S&P 500 closed above 7,700 for the first time. The Dow also gained more than 900 points and secured another record close.

Market breadth stayed positive during early trading. Advancing stocks outnumbered falling stocks by 1.26 to one on the New York Stock Exchange. The ratio reached 1.13 to one on the Nasdaq.

Disney and Eli Lilly Lead Major Stock Moves

Disney shares rose 2.9% after the company reported better-than-expected fiscal third-quarter profit. The result helped lift the Dow during morning trading.

Eli Lilly climbed 7.3% after beating second-quarter revenue and earnings estimates. The drugmaker also raised its full-year revenue forecast. Healthcare led the S&P 500 sectors with a 1.9% gain.

Moreover, Arista Networks jumped 7.3% after forecasting third-quarter revenue above market estimates. Microsoft and Alphabet each gained about 1%, supporting the broader technology sector.

However, Uber fell 5.5% after forecasting current-quarter adjusted earnings below estimates. Utilities also lagged the broader market and lost nearly 1%.

More than 84% of S&P 500 companies have beaten earnings estimates this season, according to FactSet. These results helped investors look past weaker economic data.

SpaceX and AMD Fall as NVIDIA Rallies

SpaceX shares dropped 12.5% following its first quarterly report since its June public listing. The company nearly doubled revenue, while operating losses narrowed. However, SpaceX reported a sixfold increase in capital spending to $18.4 billion. Most of that spending supported artificial intelligence projects and related infrastructure.

Nic Puckrin, founder of Coin Bureau, said AI spending was ‘getting out of hand.’ He added that companies offered ‘no signs of slowing down anytime soon.’ AMD shares fell 6.5%, although the chipmaker forecast quarterly revenue above analyst estimates. Investors expected a stronger outlook after the stock gained 142% this year.

In contrast, NVIDIA rose 3.4% after Elon Musk confirmed SpaceX would use its processors for AI infrastructure. Musk called NVIDIA’s product ‘the best AI computer’ during the earnings call.

Hormuz Hopes Support Wall Street

Oil prices held near recent levels as investors monitored talks involving Iran, Oman, and the Strait of Hormuz. Brent crude rose 1% to $80.22 per barrel.

West Texas Intermediate futures gained 0.46% to $76.12. Prices rose after Houthi militants claimed an attack on a Saudi tanker in the Red Sea.

Reuters reported that Iran and Oman were discussing a framework covering inbound ship traffic through Hormuz. However, regional sources questioned claims that an agreement was close.

One regional source said, “The concession has already been made regarding some form of control over Hormuz.” Other details still required negotiation, according to the report.

Jobs and Services Data Enter Focus

US private employers added 44,000 jobs during July, according to ADP. The total fell below June’s 95,000 increase and the 75,000 forecast. Investors now await Friday’s official nonfarm payrolls report. Employment data could affect expectations for Federal Reserve interest-rate policy during the coming months.

Meanwhile, the ISM Services PMI reached 54.1 in July, compared with 54.0 in June. A reading above 50 signals expansion. The employment component fell to 47.4, its lowest level since March. At the same time, the prices index rose to 70.3, pointing to persistent service-sector inflation.

Strong corporate earnings and easing geopolitical concerns kept Wall Street's record-breaking rally intact despite weak hiring data. Investors now await Friday's nonfarm payrolls report for fresh clues on the Federal Reserve's next policy moves. Earnings momentum and AI-driven growth remain the key drivers of market sentiment.

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