The S&P 500 traded flat on Wednesday as investors waited for Nvidia, CrowdStrike, and Salesforce to report earnings after the close. Treasury yields rose after a slightly higher-than-expected reading on the Federal Reserve's preferred inflation gauge, while Meta shares held gains on a proposed settlement over social media addiction lawsuits.
Indices pause before a heavy earnings night
The S&P 500 was basically flat on Wednesday as traders positioned for several major tech earnings reports due after the bell, led by Nvidia. Crowdstrike and Salesforce also report tonight, alongside Synopsys, Agilent, Okta, and HP Inc.
Meanwhile, Treasury yields moved higher through the session after a slightly higher-than-expected reading from the personal consumption expenditure price index, the Fed's preferred inflation gauge. Oil prices, which had traded lower for most of the day, turned positive amid a lack of new developments around the Strait of Hormuz.
Meta settlement lifts an overhang on the megacap
Meta shares held onto slight gains after the company reached a proposed settlement with 52 state and U.S. territory attorneys general over its social media addiction cases. The deal includes new protections for teens and stronger parental controls.
Analysts at Piper Sandler estimated in their reaction that the changes will affect roughly 0.5% of Meta's global users, with an even smaller revenue impact because users under 18 are less monetizable. CNBC's Jim Cramer called the settlement a big win for Meta, noting the potential fines could have been much larger and litigation could have lasted far longer.
Micron promotes two executives
Micron also announced leadership changes on Wednesday. The memory-chip maker appointed Manish Bhatia as president and chief operating officer, and Scott DeBoer as president and chief technology and products officer, while CEO Sanjay Mehrotra stays in place.
Sumit Sadana is moving from executive vice president and chief business officer to a new role as senior advisor to the CEO. Thursday's premarket session brings earnings from Best Buy, Burlington, Dollar Tree, Dollar General, and Hormel Foods, along with weekly jobless claims data.
Source: CNBC
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