The S&P 500 pulled back from a record intraday high on Wednesday while the Dow Jones Industrial Average closed at a fresh high, powered by a 4% jump in Nvidia. The Nasdaq Composite lagged as AMD and Alphabet fell on earnings, and hopes for a Strait of Hormuz deal kept oil and broader sentiment steady.
The S&P 500 lost 0.2% on Wednesday, pulling back from a record set earlier in the session as several major tech stocks declined. The Dow Jones Industrial Average broke from that pattern, gaining 263 points, or 0.5%, for a record close. The Nasdaq Composite fell 0.8%, lagging both.
Nvidia jump lifts the Dow
Dow member Nvidia shares popped 4% after Elon Musk said SpaceX would rely only on Nvidia processors for its artificial intelligence computing infrastructure going forward. On SpaceX's earnings call, Musk put it plainly: "We're exclusive to Nvidia."
SpaceX shares themselves dropped 13% after the rocket company released its first quarterly report since going public in June. The company said its capital expenditures jumped sixfold to $18.4 billion in the second quarter, ahead of analyst expectations, with most of the spending going toward AI.
AMD and Alphabet weigh on the Nasdaq
Chip maker Advanced Micro Devices and Alphabet struggled Wednesday, dragging on the Nasdaq. AMD fell 6% after posting adjusted earnings that only came in slightly ahead of the Street's estimates. Alphabet slipped 4% after the company said it's reshuffling its AI divisions, with chief scientist Jeff Dean leaving after 27 years there.
A streak at risk, and calmer oil
Wednesday's pullback put the S&P 500's winning streak in jeopardy after four straight higher closes, while the Dow was on track for its fifth consecutive winning day. Both indexes had set records in the prior session, with the S&P 500 closing above 7,700 for the first time.
Increased hope for a deal to reopen the Strait of Hormuz has also bolstered the stock market this week. Oil held steady Wednesday after falling a day earlier, when Treasury Secretary Scott Bessent said the U.S. and Iran could be closing in on an agreement. West Texas Intermediate futures settled down 0.73% at $75.22 a barrel. Brent crude futures traded up 0.11% to settle at $79.45 a barrel.
Source: US Top News and Analysis
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