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postStocks moved mostly higher on Wednesday following a tech-led sell-off as investors awaited earnings from Nvidia (NVDA) that will set the tone for the next leg of the AI trade.
The Nasdaq Composite (^IXIC) moved up 0.8%, while the S&P 500 (^GSPC) put on 0.5%. The Dow Jones Industrial Average (^DJI), which includes fewer tech names, traded broadly flat. The moves came on the heels of run of sharp losses for stocks.
Investors are bracing for Nvidia’s third-quarter earnings due after Wednesday’s close, which are expected to swing the stock up to 7% in either direction. More broadly, the chipmaking giant’s results could prove a make-or-break moment for this year’s strong S&P 500 (^GSPC) rally, which has been spurred by optimism for AI-fueled growth.
Concerns about Big Tech’s massive spending on the AI buildout have fed into multiday declines, as high-profile investors offload holdings. Unease is growing that the likes of Amazon (AMZN) are stepping up their borrowing to fund AI ambitions just as the Federal Reserve looks set to put the brakes on interest rate cuts.
Given that, Fed minutes set for release later will be put under the microscope for insight into the economy and future policy. While that meeting delivered a rate cut despite division at the Fed, traders are now evenly split on whether the central bank will ease again in December.
That view could shift on Thursday, when the market gets the September jobs report — the first major data release since the government shutdown delayed economic updates.
With fresh data still sparse, big-box retailer earnings on Wednesday could offer the clearest read on the state of US consumer spending heading into the holiday season. Target (TGT) cut its earnings outlook and flagged a weak holiday season, while Lowe’s (LOW) posted upbeat sales.
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US stocks steady at the open
Stocks were stable at the market open Wednesday ahead of a key earnings report from AI chip giant Nvidia (NVDA) but quickly picked up steam.
The Nasdaq Composite (^IXIC) edged up more than 0.1%, while the S&P 500 (^GSPC) was roughly flat. But the two gauges accelerated about five minutes after the start of the trading session to add 0.8% and 0.4%, respectively.
The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, traded flat.
The market action comes after another day of sharp losses for stocks on Tuesday.
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Adobe to acquire Semrush for $1.9 billion to shore up AI search solutions
Adobe (ADBE) announced it will acquire Semrush Holdings (SEMR), the maker of search engine optimization software, for $1.9 billion in cash.
Semrush stock soared by about 75% in premarket trading on Wednesday, as the sale price of $12 per share is nearly double the $6.76 price at which shares closed on Tuesday. Adobe stock was little changed following news of the deal, rising just 0.18%.
The acquisition will bolster Adobe’s efforts to cater to marketers looking to maintain discoverability as more consumers switch to AI for search. Even legacy retailers like Target (TGT) are looking to partner with AI startups like OpenAI (OPAI.PVT) to land real estate on ChatGPT and other AI chatbots.
“With the advent of LLMs and AI-driven search, brands need to understand where and how their customers are engaging in these new channels,” Semrush CEO Bill Wagner said. “This combination provides marketers more insights and capabilities to increase their discoverability across today’s evolving digital landscape.”
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Good morning. Here’s what’s happening today.
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Lowe’s profit tops estimates on online growth, sales to pros
Lowe’s (LOW) stock jumped more than 5% in premarket trading on Wednesday after beating Wall Street estimates on profit due to a pickup in online sales and growth in demand from professional contractors.
Bloomberg News reports:
Read more here.
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Nvidia caps Mag 7 earnings with a dose of AI jitters
Yahoo Finance’s Hamza Shaban reports:
Read more here in the takeaway from today’s Morning Brief.
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Target slashes earnings outlook, warns on holiday season
Discount retailer Target’s (TGT) stock fell 2% before the bell on Wednesday after the company slashed its full-year profit guidance and provided a cautious outlook for the holiday season, as cash-strapped consumers struggle with the affordability crisis for food, healthcare, and housing.
Yahoo Finance executive editor Brian Sozzi reports on the latest from the US retail giant:
Read more here.
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Goldman’s Waldron says markets are primed for possible further declines
Bloomberg reports:
Goldman Sachs Group Inc (GS). President John Waldron said markets are primed for possible further declines and investors will be keeping close tabs on the upcoming key earnings report from technology leader Nvidia Corp. (NVDA)
“It strikes me the market could pull back further from here,” Waldron said in an interview on the sidelines of the Bloomberg New Economy Forum in Singapore on Wednesday. “I do think the technicals are kind of more biased for more protection, and more downside.”
The S&P 500 (^GSPC) is down more than 3% this month, on course for its worst month since March, while volatility has surged. A selloff in the world’s largest technology companies has reignited a debate on AI, and whether it is generating enough revenue or profit to justify the massive spending on infrastructure.
“You’re seeing in the markets right now a pullback, which I think is healthy — markets have run quite a bit this year,” he said on Bloomberg Television. “Markets are heavily focused on this AI dynamic: are we going to get the returns on capital invested that the market expects, and is that priced in? That’s a big debate.”
Read more here.
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Premarket trending tickers: Lowe’s, DoorDash, and MP Materials
Lowe’s (LOW) stock rose 4% before the bell after beating Wall Street estimates on quarterly sales. The retailer did, however, lower its full-year profit forecast amid growing economic uncertainty.
DoorDash (DASH) stock rose 3% before the bell following the news that Kroger will expand its partnerships with the online food ordering company.
MP Materials’ (MP) stock was up 4% in premarket trading on Thursday. The rare-earth company has seen some volatility over recent weeks due to export restrictions on rare earths from China. As part of the one-year trade truce, Beijing agreed to remove these restrictions; however, news has emerged that the details of that agreement have yet to be finalized between the US and China.
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Great bitcoin crash of 2025 has the crypto lagging bonds, gold
Bloomberg reports:
Read more here.
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Constellation Energy rises after US loans $1B to restart nuclear reactor project
Constellation Energy (CEG) stock rose 3% before the bell on Wednesday after the US Department of Energy said it will loan $1 billion to help finance the restart of the nuclear power plant on Pennsylvania’s Three Mile Island that is under contract to supply power to data centers for tech giant Microsoft (MSFT).
The AP reports:
Read more here.
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Gold holds as tech stock drop pushes haven demand
Bloomberg reports:
Read more here.
