The S&P 500 reached a new record high on Wednesday, closing at 6,144.15 after gaining 0.24%. The Nasdaq Composite added 0.07% to close at 20,056.25, while the Dow Jones Industrial Average advanced 71.25 points, or 0.16%, to end at 44,627.59. Microsoft and Nvidia led the technology sector higher following strong quarterly results.
Microsoft surged nearly 10%, and Nvidia gained 1.3%. President Trump hinted at potential tariffs on imported autos, chips, and pharmaceuticals, which could be implemented as soon as April 2. Jim Elios, founder and chief investment officer at Elios Financial Group, said, “I think there’s a lot of noise tied to tariffs and other short-term factors, but in the long term, I’m bullish about a pro-business environment.”
Palantir shares fell as much as 12.9%, marking their biggest loss since May 2024.
This followed an announcement that the Trump Administration is directing Pentagon officials to cut 8% from the defense budget over the next five years. Morgan Stanley raised its ‘bull case’ price target for Walmart shares to $153 per share, up from $133. Analyst Simeon Gutman expects Walmart’s alternative business ventures to drive significant revenue and profit growth over the next three years.
Analysts are enthusiastic about Nike’s new partnership with Kim Kardashian’s Skims brand. The collaboration, branded NikeSKIMS, will debut its first collection this spring.
Market snapshot: record highs and sector gains
Microsoft unveiled its first quantum computing chip, Majorana 1, signaling a major milestone after nearly two decades of research. Quantum stocks rallied following the announcement, with shares of Rigetti Computing surging 42%, and both IonQ and D-Wave gaining around 5%. Apple introduced its latest smartphone, the iPhone 16e, set to retail for $599 and capable of running artificial intelligence technology.
Despite the new release, Apple shares remained relatively flat throughout Wednesday’s session. Super Micro Computer (Supermicro) shares rose 8% following the server maker’s recent optimistic outlook on AI-driven sales growth. Supermicro shares have surged 56% over the past week.
Several stocks made significant moves following their quarterly earnings reports. Homebuilder Toll Bros and cloud networking company Arista Networks saw their shares drop around 6%, while specialty chemicals maker Celanese plummeted 21%, leading the S&P 500 decliners. However, semiconductor company Analog Devices and GPS device maker Garmin each rose nearly 10% and 13%, respectively.
Hims & Hers Health shares surged to a record high after announcing the acquisition of lab testing facility Trybe Labs. This deal will enable the company to offer at-home blood testing, providing customers with information on various health metrics.