The U.S. stock market reached new heights on Wednesday, with the S&P 500 gaining 0.3% and the Dow Jones Industrial Average increasing by 114 points, or 0.2%. The Nasdaq composite also saw a rise of 0.5%. This upward trend was spurred by favorable news from ASML, a Dutch semiconductor equipment manufacturer, which forecasted revenue for 2026 that exceeded analysts’ expectations. CEO Christophe Fouquet noted that ASML’s customers are optimistic about sustained demand, especially relating to the artificial intelligence sector, alleviating concerns of a possible bubble in AI investments.
Among the biggest beneficiaries of this optimism was Nvidia, a key player in the AI market, whose stock increased by 1.2%. Conversely, ASML’s stock in the U.S. remained relatively flat. Meanwhile, other companies reported mixed results. Starbucks shares surged 4.9% following a quarterly revenue that surpassed expectations, although its profit forecast for 2025 fell short of targets. In contrast, Amphenol’s stock plummeted 14.9% despite exceeding profit and revenue growth forecasts, as the stock was already riding high from a previous 23% increase earlier this year.
Investors are increasingly vigilant about corporate profit growth, particularly after substantial stock price increases. The ongoing need for earnings to justify elevated stock prices adds pressure on companies across the market.
In currency movements, the U.S. dollar stabilized, climbing roughly 0.3% against both the British pound and the Japanese yen after dropping to its lowest value in almost four years a day prior. The dollar’s decline has been a trend since the previous administration and was exacerbated by tariff threats made recently that raised concerns among global investors.
Treasury yields remained stable ahead of an upcoming Federal Reserve announcement on interest rates. Analysts anticipate the Fed will maintain its main interest rate steady, after several cuts last year aimed at bolstering the job market. However, inflation continues to challenge the Fed’s 2% target, leading to discussions about the impact of lower rates on consumer prices and the dollar’s value. Meanwhile, the yield on the 10-year Treasury held steady at 4.24%.
As investors showed caution towards the U.S. dollar amid political tensions, demand for safe-haven assets like gold surged, leading to an increase in gold prices, which soared above $5,000 per ounce for the first time and further rose to $5,258.50.
On the global front, European markets reflected a downward trend, while Asian markets thrived. South Korea’s Kospi index climbed 1.7% to achieve a new record, buoyed by a 5.1% surge in the shares of chipmaker SK Hynix, and Hong Kong’s Hang Seng index enjoyed a robust increase of 2.6%.
