Wall Street Closes Higher, Led by Walt Disney Shares
Despite the broader gains, Alphabet shares sank more than 8%, dragging on the tech sector.
Quick overview
- U.S. stock indexes closed higher, buoyed by optimism over U.S.-China trade talks and the Federal Reserve's decision to keep interest rates unchanged.
- The Dow Jones rose 0.70%, the S&P 500 climbed 0.43%, and the Nasdaq advanced 0.27%, with Walt Disney's shares jumping 10.73% after strong quarterly results.
- The Federal Reserve flagged increased inflation risks and concerns over unemployment, while markets reacted positively to upcoming trade negotiations with China.
- Despite overall gains, Alphabet's shares fell over 8% due to competition concerns from Apple's new AI-powered search features.
U.S. stock indexes closed higher on Wednesday, lifted by optimism over potential progress in U.S.-China trade talks and the Federal Reserve’s policy announcement.
The Dow Jones Industrial Average rose 0.70% to 41,113.97 points, while the S&P 500 climbed 0.43% to 5,631.28. The Nasdaq Composite advanced 0.27% to 17,738.16.
A standout in the session was Walt Disney, which jumped 10.73% after posting stronger-than-expected quarterly results, driven by an unexpected boost from its Disney+ streaming service and theme parks division.
The Federal Reserve left its benchmark interest rate unchanged at 4.25–4.50%, as widely expected. However, its statement flagged increased inflation risks, particularly due to tariffs, and noted rising concerns over both unemployment and price pressures.
On the trade front, markets responded positively to news that Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet this weekend in Geneva with China’s top economic official, He Lifeng, in what could be a first step toward a trade deal.
Chipmakers also helped lift the market late in the session, following reports that President Donald Trump is considering reversing President Joe Biden’s restrictions on AI-related chip exports, sparking a rally in the sector.
Tech Sector Hit by Alphabet Drop
Despite the broader gains, Alphabet shares sank more than 8%, dragging on the tech sector. The decline came amid concerns over rising competition in the search market after Apple announced plans to integrate AI-powered search features into its web browsers.
The move threatens Alphabet’s lucrative revenue-sharing deal with Apple, which sets Google as the default search engine on iOS devices. Apple shares also slipped 1.3% on the news.
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