Stocks rose on Wednesday as traders took in some positive corporate earnings reports. Morgan Stanley and United Airlines beat expectations, sending their shares up 7% and 14%, respectively. Semiconductor stocks were reeling after a sharp selloff on Tuesday, with all eyes on TSMC as it prepares to report earnings.
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U.S. stocks rose on Wednesday as traders took in strong earnings results, rebounding from losses in the chip sector in the previous session.
Major stock averages ended higher, with the Dow Jones Industrial Average rising more than 300 points to close at an all-time high.
Morgan Stanley beat expectations in the third quarter, sending its stock up about 7%. United Airlines also beat expectations in the previous reporting period, with its stock soaring more than 12% by the end of the day.
Chip stocks were trading mixed, struggling to fully recover after the semiconductor sector plunged on Tuesday. ASML lowered its revenue outlook for 2025, raising concerns about the outlook for demand for AI-enabled chips.
TSMC and Advanced Micro Devices fell slightly. Investors are paying particular attention to TSMC, which is expected to report earnings early Thursday.
“The sector has been hit by profit warnings from Dutch chip equipment maker ASML and reports that the US is restricting sales of advanced AI chips from US companies such as Nvidia on a country-by-country basis. All eyes will continue to be on chipmakers,” Forex.com analyst Fawad Razakzada said in a statement. “Traders will be wondering if Tuesday signaled a change in trend. Is it time to start shorting the market, or will bullish buying come to the rescue again?”
However, the stock price continues to match the strong quarterly results. The S&P 500 index is on track to report annualized earnings growth of 7% in the third quarter, according to FactSet estimates.
Here are the US indexes as of Wednesday’s 4pm close:
Here’s what else is going on:
In Commodities, Fixed Income and Cryptocurrencies:
West Texas Intermediate crude oil fell slightly to $70.50 per barrel. Brent crude, the international benchmark, rose slightly to $74.32 per barrel. Gold rose 0.5% to $2,691 an ounce. The 10-year US Treasury yield fell 2 basis points to 4.014%. Bitcoin rose 1.13% to $67,702.
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