U.S. stocks traded higher on Wednesday, with the benchmark S&P 500 briefly breaking through the historic 7,000-point level for the first time. Chip stocks led the advance after Dutch semiconductor equipment maker ASML Holding reported record quarterly orders.
Gains were moderated by investor caution ahead of the latest interest rate decision from the Federal Reserve and a busy slate of earnings from major technology companies later in the day.
By 10:37 ET, the S&P 500 was up 0.2% at 6,989.32, after briefly touching an intraday high of 7,002.52 shortly after the opening bell. The milestone drew praise from President Donald Trump, who declared “America is back!!!” in a post on Truth Social.
The Dow Jones Industrial Average rose 0.1% to 49,041.30, while the Nasdaq Composite gained 0.4% to 23,901.35, helped by strength in technology shares.
Fed decision in focus
Markets remain firmly focused on the Federal Reserve, which is widely expected to leave interest rates unchanged later in the session. Investors are weighing signs of easing—but still elevated—inflation against steady economic growth and a resilient labor market.
Adding to the uncertainty, U.S. consumer confidence fell sharply in January to its lowest level in 12 years, according to the Conference Board. Sentiment has been hit by political tensions, the risk of a partial government shutdown, and renewed tariff threats from President Trump.
Fed Chair Jerome Powell is expected to face questions on how long rates could remain at current levels and when cuts might eventually begin. Analysts at ING said investors will be particularly alert to any comments on policy dissent and the Fed’s independence, especially as Trump prepares to name a new Fed chair. Powell’s current term ends in May.
Big Tech earnings take center stage
Corporate earnings are another key driver this week, with four members of the so-called “Magnificent Seven” technology group reporting results. Tesla, Meta Platforms, and Microsoft are set to report after the close on Wednesday, followed by Apple on Thursday.
Together, these companies hold significant weight in major indexes, and their guidance on artificial intelligence spending, cloud demand, and consumer trends is expected to shape market direction in the days ahead.
ASML’s strong results gave fresh momentum to the AI trade, even as the company announced plans to cut around 1,700 jobs, mainly in the Netherlands. Its revenue outlook for the current quarter exceeded expectations.
AI-linked optimism also lifted Texas Instruments, after the chipmaker issued an upbeat forecast pointing to strong demand from AI data centers. Shares of Seagate Technology also rose after earnings topped estimates, driven by rapid expansion of AI infrastructure.
Outside technology, AT&T gained after forecasting annual profit above expectations, citing growth in wireless and fiber services. Meanwhile, Spotify said it paid more than $11 billion to the music industry in 2025, the largest annual payout by a retailer to date.
Gold hits record as oil extends gains
Gold prices climbed to a record above $5,300 an ounce, supported by safe-haven demand ahead of the Fed decision and continued weakness in the U.S. dollar. Silver and platinum also traded near recent highs.
Oil prices edged higher, extending gains from earlier in the week after a severe winter storm disrupted U.S. energy production. Brent crude rose 0.7% to $67.07 a barrel, while West Texas Intermediate advanced 1% to $63.02.
Both benchmarks jumped around 3% on Tuesday, after closing last week at their highest levels since mid-January. Estimates suggest the storm cut U.S. output by up to 2 million barrels per day, roughly 15% of national production, due to disruptions across energy infrastructure and power grids.
