US stocks closed higher on Wednesday, snapping recent declines as investors welcomed a boost in domestic investment from Apple and digested a fresh round of corporate earnings.
The S&P 500 rose 0.73% to finish at 6,345.06, while the Nasdaq jumped 1.21% to 21,169.42. The Dow Jones Industrial Average gained 81 points, or 0.18%, to close at 44,193.12.
Wednesday’s gains follow a soft patch for markets. The S&P had fallen in five of the previous six sessions, and the Dow had posted six negative days out of the last seven.
Apple Drives Gains After US Investment Pledge
Apple shares soared 5%, lifting its market capitalisation back above US$3 trillion, after the White House confirmed the company would invest an additional US$100 billion in its US operations. That brings Apple’s total domestic commitment to US$600 billion over the next four years.
The investment also comes as reports suggest Apple may avoid new tariffs on phones assembled in India. Analysts said the announcement helped ease trade tensions that had recently weighed on markets.
Amazon added 4% and Tesla gained 3.6%, contributing to the tech-led rally.
Tariffs on India Escalate
Despite the optimism, investors remain wary of trade policy. President Donald Trump on Wednesday announced plans to double tariffs on Indian imports to 50%, citing India’s continued purchase of Russian oil. Indian officials said the purchases are vital to their national security.
Earnings Season Beats But Reactions Mixed
Earnings season remains strong, with 81% of S&P 500 companies beating analyst expectations, according to FactSet. McDonald’s rose nearly 3% after reporting its fastest same-store sales growth in two years. Arista Networks surged 17% on robust results.
But not all results were rewarded. Snap dropped 17% after a revenue miss, while AMD slid 6% on weaker-than-expected earnings per share.
Australian Market Set to Open Lower
The SPI 200 futures point to a 27-point drop at the open. Key data today includes Australia’s June trade balance at 11:30am and earnings from AMP and Light & Wonder.
