4:10pm: Tech optimism boosts markets
Wall Street shook off trade jitters and powered higher on Wednesday, buoyed by a newly inked U.S.-Japan trade deal and growing optimism for second-quarter earnings from tech heavyweights Alphabet and Tesla.
The Dow Jones Industrial Average surged 508 points, or 1.1%, to close at 45,010, while the S&P 500 gained 0.8% to finish at 6,359. The Nasdaq Composite added 127 points, or 0.6%, to end the session at 21,020. Small-cap stocks outpaced the broader market, with the Russell 2000 climbing 1.5% to 2,283.
The rally was fueled in part by a trade agreement between the U.S. and Japan that lifted tariffs on key exports. The move sparked hopes for further global trade deals, helping ease some of the tensions that had flared under former President Trump's protectionist policies.
Investors were also positioning for earnings from Alphabet (GOOG, GOOGL) and Tesla (TSLA), both scheduled to report after the bell.
Alphabet, the parent of Google, has become a central player in the AI race. CEO Sundar Pichai recently highlighted the company’s momentum, noting that its AI Overview tool is already reaching 1.5 billion users, and that AI-powered searches are twice as long as traditional ones. Analysts will be watching closely for signs of how that’s translating into ad revenue and cloud growth.
Meanwhile, Tesla is set to unveil its Q2 results amid a backdrop of record highs for the Nasdaq and S&P 500. The EV maker's earnings come at a time when investors appear more willing to bet on tech growth, brushing off past worries tied to trade wars and economic slowdown.
With major earnings and Fed commentary still ahead this week, the market’s tone remains cautiously optimistic.
3:45pm: Proactive news headlines
- Union Jack Oil raised £2 million to fund a three-well drilling program in Oklahoma targeting the Sark, Crossroads, and Wolverine-1 prospects.
- Standard Uranium identified 29 km of conductive strike length and high-priority targets at its Corvo project through a high-resolution airborne TDEM survey.
- American Resources announced a strategic partnership with Blackion LLC to establish a domestic, vertically integrated lithium-ion battery recycling supply chain.
- Northstar Gold signed an LOI with Novamera to apply Surgical Mining technology for extracting high-grade copper at its Cam Copper Mine in Ontario.
- Uranium American Resources completed a rebrand and ticker change to ‘UARI’ as part of its strategic shift toward uranium and vanadium projects.
- NanoViricides reported strong preclinical efficacy of its NV-387 antiviral candidate against a broad range of viruses, including orthopoxviruses and influenza.
- Baselode Energy launched a C$5 million private placement to fund uranium exploration in the Thelon and Athabasca Basins.
- G Mining Ventures resolved a permitting issue at its Gurupi gold project in Brazil following a favorable court ruling.
- Sona Nanotech received ethics board approval to proceed with a pilot human trial of its nanorod-based cancer therapy for late-stage melanoma.
- Power Nickel reported promising mineralogical scan results from its Nisk project’s Lion zone, aiding future metallurgical recovery studies.
- Caledonia Mining shares rose 9% after the company indicated Q2 profits were materially better than expected, continuing its strong performance.
- Lancaster Resources outlined plans to begin field exploration at its Lake Cargelligo Gold Project in Australia in Q3 2025.
3:00pm: Alphabet on deck
Alphabet Inc (NASDAQ:GOOG) is set to report its second quarter results amid what Jefferies analysts describe as a “favorable setup,” with strength in YouTube, steady Cloud growth, and signs of modest advertising upside.
“Q2 setup looks favorable with easier comps and modest ad upside on easing tariffs, though macro headwinds and cautious second-half budgets continue to weigh,” the analysts wrote in a note.
Despite some near-term pressures, Jefferies expects profitability to hold steady. They project an EBIT margin of 37.4%, compared to the Street estimate of 38.8%, with ongoing headcount reduction driving operating leverage and offset by rising AI capex build-out and higher cost-to-serve.
2:35pm: Stocks on the move
- atai Life Sciences is gaining traction in the psychedelics space, with Jefferies backing its potential to lead the treatment-resistant depression market via its BPL-003 compound.
- Thermo Fisher Scientific shares jumped nearly 12% after second-quarter results beat expectations, supported by strong life sciences and diagnostics demand.
- GE Vernova surged nearly 15% after reporting better-than-expected earnings, driven by strength in its Power and Electrification businesses.
- Opendoor, Kohl’s, Krispy Kreme, and GoPro saw speculative retail-driven gains amid a new wave of 'meme stocks' despite little to no fundamental news.
- Texas Instruments fell 12% after issuing a weaker-than-expected Q3 outlook, overshadowing its strong second-quarter results.
- Standard Uranium reported encouraging survey results from its Corvo project, identifying 29 km of conductor strike length and multiple exploration targets.
- Hochschild Mining rose 8% after strong H1 operational performance at its Inmaculada and San Jose mines boosted production.
- Caledonia Mining climbed 9% on signs of better-than-expected Q2 profits, following a solid first quarter supported by high gold output and prices.
1:25pm: US, EU near tariff deal
US and European Union officials are closing in on a potential trade agreement that would set a 15% baseline tariff on EU goods while waiving duties on select products such as aircraft, spirits, and medical devices, the Financial Times reported Wednesday, citing EU diplomats.
The report said a broad majority of EU member states would back the use of the bloc’s anti-coercion instrument if the US fails to agree to the deal and imposes higher tariffs of up to 30%.
US markets moved higher following the news.
12:15pm: High mortgage rates pressure housing
Elevated mortgage rates remain a major headwind for the US housing sector, with existing home sales falling 2.7% in June to a 10-month low of 3.93 million units.
While softer demand has allowed inventories to rise slightly, supply remains tight enough to keep prices elevated. The median existing home price hit a record $435,000 in June.
“Elevated home prices are also a significant limitation for home buyers,” Wells Fargo noted.
Mortgage rates have hovered near 7% this year, increasing the financial burden on households. The average monthly principal and interest payment on a median-priced home jumped to $2,250 in May—more than double the 2019 level.
Price growth has cooled, though it remains positive. In June, the median resale price was up 2.0% year-over-year, a slowdown from the 4.4% average pace seen in 2024. Gains were stronger in the Northeast and Midwest, where inventory remains tight, and weakest in the South, where supply has grown most.
11:45am: Meme stocks surging
A new wave of 'meme stocks' has apparently emerged, though some analysts said this was a product of summer stock market madness.
Retail-driven speculation has pushed shares of Opendoor Technologies Inc (NASDAQ:OPEN), Kohl's Corporation (NYSE:KSS), Krispy Kreme Doughnuts Inc (NASDAQ:DNUT) and GoPro Inc (NASDAQ:GPRO) higher, despite a near-total absence of corporate news.
“The meme stock frenzy is back, this time with new players,” said Daniela Sabin Hathorn, market analyst at Capital.com.
Trading volumes have exploded across these names, driven by social media chatter, retail momentum, and heavily shorted positions that created ideal conditions for classic short squeezes.
The backdrop to this resurgence includes a rising risk-on appetite, a recovering crypto market, and increasingly active retail participation. Still, the risks are clear.
“As we've seen before, what goes up must come down,” XTB's Kathleen Brooks noted.
11:15am: US to ease AI rules
The Trump administration on Wednesday unveiled a sweeping "AI Action Plan" aimed at scaling back regulations and accelerating artificial intelligence infrastructure across the US.
The plan recommends more than 90 policies to expand AI data centers and streamline permitting, while promoting US energy sources to meet the sector’s power demands.
“We believe we’re in an AI race,” said White House AI czar David Sacks.
Critics argue the move prioritizes tech industry growth over safeguards.
Trump has pledged to eliminate “woke” bias from AI models and promote US standards globally.
10:25am: Trade deal lifts mood
Market sentiment improved Wednesday following a trade agreement between the US and Japan, which included a major win for Japan’s auto sector.
The deal lowers US auto tariffs on Japanese vehicles to 15% from the previous flat rate of 25%, in exchange for Japan pledging $550 billion in US investment.
“The auto component is by far the biggest coup for Japan,” Kathleen Brooks, research director at XTB noted, adding that the agreement raises hopes other countries could secure favorable deals by offering similar investments.
Brooks also pointed out that optimism around a potential US-China trade deal is building. With talks set to resume next week, Brooks said the US appears more focused on negotiating with China than with the EU, which faces a looming August 1st tariff deadline.
9.55am: S&P hits new high, Russell 2000 leads gains
Wall Street has started mostly higher, led by the Dow Jones, which has gained 0.3%, while the S&P 500 advanced 0.2% to another intraday high.
The Nasdaq Composite is nine points above flat, while the more domestically focused Russell 2000 is up 0.7%.
Nvidia is up 1.8% to reverse some of yesterday's fall, though Microsoft, Alphabet, Tesla and Netflix are lower.
Texas Instruments is one of the biggest fallers in the S&P 500 on a cautious outlook, pointing to a slow recovery in the auto industry as tariffs disrupt international supply chains.
Fiserv, the financial services technology provider, fell 21% after lowering guidance despite a second-quarter earnings beat.
8am: Japan deal boosts S&P futures
US stocks have been called higher on Wednesday after Donald Trump revealed the US had agreed a "massive" trade deal with Japan.
Wall Street index futures pointed higher, with the Dow Jones up 0.5%, the S&P 500 up 0.4% and Nasdaq 100 up less than 0.1%.
US markets were mixed overnight, with the S&P nudging its own all-time high, up less than 0.1%, while the Dow rose 0.4%, but the Nasdaq fell 0.4% as Nvidia joined a semiconductor sell-off.
Asian markets finished higher in the early hours, led by a 3.5% gain for the Nikkei 225 in Tokyo, followed by strong gains in Europe, led by carmakers.
President Trump said in a social media post that Japan will receive a 15% reciprocal tariff and invest $550 billion in the US "at my direction".
Counterpart Shigeru Ishiba confirmed that Japan will not be disadvantaged from any tariffs on microchips, though the 50% tariff on steel and aluminium will remain for the time being.
In Tokyo, shares in carmakers led the way, as exports to the US will see no volume restrictions, in contrast to the UK’s trade arrangement.
Mazda Motor and Subaru soared over 17%, with Toyota, Mitsubishi and Honda all up in double digits, followed by factory robotics specialists Fanuc and Yaskawa Electric.
US auto stocks were higher ahead of the open in New York, though, despite a group representing GM, Ford and Stellantis pushing back on the proposed trade deal, arguing it puts US-made cars with high domestic content at a disadvantage.
Earnings in the main spotlight are due after the close, namely two of the 'Magnificent 7' tech behemoths: Alphabet and Tesla.
Before the open, numbers are coming through from AT&T, GE Vernova, Boston Scientific and Northrop Grumman.