US Stocks-S&P 500, Dow at record highs on Mideast deal hopes; SpaceX, AMD drag

The S&P 500 and the Dow traded at all-time highs on Wednesday on hopes of a Middle East peace breakthrough, while the tech-heavy Nasdaq struggled to stay afloat, limited by a slide in SpaceX and AMD after the upbeat forecasts issued by the companies failed to impress investors. At 11:38 a.m. ET, the Dow Jones Industrial Average rose 435.60 points, or 0.81%, to 54,521.48, the S&P 500 gained 8.34 points, or 0.11%, to 7,744.86 and the Nasdaq Composite lost 10.68 points, or 0.04%, to 26,574.32. Wednesday's moves built on Wall Street's recent rally that took the benchmark S&P 500 and the blue-chip Dow to record highs following strong forecasts from AI-hyperscalers including Microsoft and Amazon in the previous week. On the data front, U.S. private payrolls growth slowed in July, as per the ADP national employment report. The bigger focus will be on the official non-farm payrolls figures on Friday. Data has broadly reflected robust economic performance, but with Middle East tensions keeping energy costs elevated and the Federal Reserve offering no forecasts on monetary policy, uncertainty persists. Minneapolis Fed President Neel Kashkari in an interview with CNBC said he believed now is the time to start slowly moving interest rates higher. At least two more top Fed officials are expected to speak later in the day. Five of the 11 S&P sectors were trading higher. Materials led the gains with a 1.5% rise, tracking a 4% jump in gold and silver prices. Energy stocks lagged with a near 2.1% fall. Declining issues outnumbered advancers by a 1.2-to-1 ratio on the NYSE and by a 1.37-to-1 ratio on the Nasdaq. The S&P 500 posted 33 new 52-week highs and two new lows, while the Nasdaq Composite recorded 86 new highs and 50 new lows. Elon Musk-led SpaceX's revenue nearly doubled and operating losses narrowed in its first earnings report since going public, fueled by its booming Starlink satellite communications and AI businesses. But the rocket company's shares slid 7.3% after executives flagged the spending spree underpinning its lofty ambitions was far from over. Shares could face additional pressure from the expiry of the stock's post-IPO lock-up period starting on Thursday. Musk's other company, Tesla, slipped 1.3%. Advanced Micro Devices forecast quarterly revenue above estimates, reflecting strong AI demand. However, shares slipped 6.5%, suggesting investors were looking for a stronger outlook to justify the stock's 142% jump this year. Rival Nvidia's shares, which have lagged AMD this year, rose 3.7%, also underpinned by SpaceX's plans to use the company's hardware exclusively to build its data centers. Investors also weighed a slew of earnings from other sectors. Drugmaker Eli Lilly was up 2.8% after raising its full-year revenue forecast, while Disney rose 2.2% after beating third-quarter profit expectations. Arista Networks jumped 3.8%, as the networking equipment maker forecast third-quarter revenue above estimates. Uber lost 6.2% after forecasting current-quarter adjusted earnings below estimates. Among others, drug developer Charles River Laboratories jumped 11.8% after raising its annual profit forecast, while medical device maker Insulet tanked 20% after lowering its annual sales growth forecast.

US Stocks-S&P 500, Dow at record highs on Mideast deal hopes; SpaceX, AMD drag

Wall Street hits record highs on peace hopes

Jobs data and Fed comments keep focus on the economy

Earnings movers include SpaceX, AMD, Eli Lilly and Disney

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