Updated 1 min read
US stocks diverged on Wednesday as investors looked ahead to earnings from Alphabet (GOOG) and Tesla (TSLA) after the market close, while fresh tariffs and rising oil prices remained in focus.
The Dow Jones Industrial Average (^DJI) turned higher, rising 0.3%, and the S&P 500 (^GSPC) added roughly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) slipped 0.1%, leading the retreat from a winning day on Wall Street the day before.
A tech recovery faces its next test later Wednesday when Alphabet and Tesla post second quarter results, the first two of the “Magnificent Seven” megacaps to report. Investors are weighing whether Google’s AI monetization efforts justify surging spending on AI. All eyes will be on Tesla’s capex, too, as the Elon Musk-led company vaults into its next phase of automation.
Among the other notable earnings, Supermicro (SMCI) shares surged after the AI server maker reported a record backlog. IBM (IBM) is also scheduled to report Q2 results after a pre-earnings warning caused a brutal stock drop last week. The power and electrification giant GE Vernova (GEV) reported revenue above expectations and a steadily growing order book but missed on earnings per share.
In trade news, President Trump appears ready to replace expiring 10% global tariffs with more permanent duties, including a potential 100% tariff on imported generic drugs. A new 25% tariff targeting Brazil came into effect on Wednesday.
Oil prices also continued to rise as the US began its 11th straight night of airstrikes against Iran. On Tuesday, Defense Secretary Pete Hegseth disclosed to Congress that the US has spent $37.5 billion so far on the war, which has re-escalated in recent days.
