U.S. stock markets finished mixed on Wednesday as investor optimism, fueled by easing trade tensions between the U.S. and China, continued to support a broad rally.
The S&P 500 gained 0.1%, while the Nasdaq rose 0.57%. However, the Dow Jones Industrial Average slipped 0.21%, dragged down by losses in some industrial stocks.
Tech Stocks Lead the Rally
Technology shares were the major drivers behind the gains. Nvidia surged more than 3% after announcing a deal to send 18,000 AI chips to Saudi Arabia. Meanwhile, AMD rose over 4% following the announcement of a $6 billion share buyback. The Nasdaq has now gained more than 6% this week, while the S&P 500 and Dow have risen 4% and 1%, respectively.
Positive News from China-Tariff Negotiations
Markets continued to react positively to a trade agreement between the U.S. and China that temporarily eases tariff burdens. Under the deal, the U.S. lowered tariffs on Chinese goods to 30%, while China reduced its duties on U.S. imports to 10%.
The S&P 500, which had been in negative territory earlier this year, is now up more than 21% from its April low, reflecting the market’s renewed optimism.
Analysts Caution on Rally’s Sustainability
Despite the upbeat momentum, analysts warn that the market rally could lose steam without additional policy actions. Daniel Skelly of Morgan Stanley noted, “The next leg higher will have to wait for policy initiatives that could provide tailwinds into 2026.”
Individual Stock Movers
Several stocks saw significant movement. eToro made a strong debut on the Nasdaq, jumping nearly 29%. Super Micro Computer surged 17%, buoyed by a major $20 billion Saudi data center deal. Boeing shares rose 2% following the announcement of a $96 billion aircraft sale to Qatar Airways.
On the other hand, Tesla showed signs of a cooling rally. S3 Partners flagged technical indicators that suggest potential near-term price pressure for the electric vehicle maker.
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