U.S. stocks took a breather on Wednesday, pausing a two-day rally as the tenuous Israel-Iran cease fire continued to hold and investors pored over a second day of congressional testimony from Federal Reserve Chair Jerome Powell.
Tech shares lifted the Nasdaq, while the S&P 500 ended flat. The benchmark index remained within striking distance of its record closing high reached on February 19.
Market Snapshot
The Dow Jones Industrial Average fell 106.59 points, or 0.25%, to 42,982.43, the S&P 500 lost 0.02 points, or 0.00%, to 6,092.16 and the Nasdaq Composite gained 61.02 points, or 0.31%, to 19,973.55. Tesla Motors fell 4%; CoreWeave, Inc. fell 8%; Coinbase Global, Inc. rose 3%; Advanced Micro Devices rose 4%; SUPER MICRO COMPUTER INC rose 9%.
Market Movers
U.S.-listed shares of BP PLC were up 1.6% after The Wall Street Journal reported Shell was holding early stage talks to acquire its oil rival. Shell shares listed in the U.S. fell 1%. A spokesperson for Shell told Barron's the report was "market speculation" and denied discussions were taking place.
FedEx reported fiscal fourth-quarter adjusted earnings of $6.07 share and revenue of $22.2 billion, beating Wall Street forecasts. But the shipping giant was down 3.3% after saying it expects first-quarter adjusted earnings of $3.40 to $4 a share versus estimates of $4.05, and revenue in the period to be flat or increase up to 2% compared with analysts' projections that called for revenue to increase about 0.6%. FedEx didn't provide fiscal-year profit guidance as it usually does.
BlackBerry surged 12% after the cybersecurity company boosted its fiscal-year sales guidance after swinging to a profit in the first quarter and reporting better-than-expected revenue.
Quantumscape Corp. soared 31% after the solid-state battery start-up said it successfully integrated its advanced Cobra separator process into baseline cell production, in what the company called "a major milestone in the scale-up of its production capabilities." CEO Siva Sivaram said, "By significantly improving throughput and shrinking the equipment footprint, Cobra gives us a powerful path forward for commercializing our next-generation battery technology."
General Mills fell 5.1%. The maker of Cheerios cereal and Progresso soups narrowly beat fiscal fourth-quarter earnings expectations but said it anticipates another challenging year ahead. The company guided for organic net sales in a range of down 1% to up 1% for fiscal 2026. Adjusted earnings are expected to decline 10% to 15%.
NVIDIA rose 4.3% to $154.31. Shares of the chip maker topped its prior record close of $149.43 from Jan. 6. Analysts at Loop Capital on Wednesday raised their price target to $250 from $175 and kept a Buy rating on the stock.
Shares of AeroVironment jumped 22% after the drone maker posted fiscal fourth-quarter earnings and revenue that topped analysts' expectations. Revenue in the period rose 40% year over year to $275.1 million.
Bumble Inc. was up 25%. The online dating company said it would cut about 30% of its employees, or roughly 240 workers. "The reality is, we need to take decisive action to restructure to build a company that's resilient, intentional, and ready for the next decade," said Chief Executive Whitney Wolfe Herd in a letter to employees. The company also boosted its outlook for the second quarter.
Market News
Nvidia Shares Hit Record as AI Chipmaker Again Becomes World’s Most Valuable Company
NVIDIA shares rose more than 4% on Wednesday and closed at a record for the first time since January, as investors gain confidence that the company’s leadership in artificial intelligence won’t be dampened by Chinese export controls.
The stock finished at $154.31, exceeding its prior closing high of $149.43 on Jan. 6.
Nvidia is now worth $3.77 trillion, making it the largest company in the world by market cap, slightly beating out Microsoft, one of its main customers. Apple is third at about $3 trillion.
Circle’s Stock Plummets 25% over Two Days as Investors Flock to This Other Stablecoin Play
Circle Internet Corp. shares lost 11% on Wednesday, three weeks after the company’s splashy initial public offering, with focus now shifting to other stablecoin plays.
Circle’s stock has tumbled 24.6% over the past two trading days, while Coinbase Global, Inc. shares have run up 15.5% over the same stretch to close Wednesday just 0.6% away from a record high.
Micron Forecasts Revenue Above Estimates on AI-Driven Memory Chip Demand
Micron Technology forecast fourth-quarter revenue above Wall Street estimates on Wednesday on robust demand for its high-bandwidth memory (HBM) chips used in artificial intelligence data centers.
The memory chip maker reported a nearly 50% jump in third-quarter sales of its HBM chips from the previous three months, and said it will continue to invest in the chips.
