Wall Street ends higher with Nasdaq up more than 1%, led by Apple
Shares of Apple (AAPL.O), opens new tab jumped 5.1% and provided the biggest boost to all three of the major indexes after a White House official said the company would announce a $100-billion domestic manufacturing pledge.
In addition, shares of McDonald's (MCD.N), opens new tab rose 3% after the fast-food restaurant's affordable menu drove global sales past expectations, while Arista Networks (ANET.N), opens new tab shares jumped 17.5% after the cloud networking company projected current-quarter revenue above estimates.
"Earnings continue to come in better than expected," said Sam Stovall, chief investment strategist at CFRA Research.
He said while there is uncertainty surrounding tariffs, investors appear to be upbeat about the near term.
Results are now in from about 400 of the S&P 500 companies for the second-quarter earnings season.
About 80% of reports are beating analyst earnings expectations - above the 76% average of the last four quarters - and earnings growth for the quarter is estimated at 12.1%, up from 5.8% at the start of July, according to LSEG data.
On Wednesday, U.S. President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil.
The Dow Jones Industrial Average (.DJI), opens new tab rose 81.38 points, or 0.18%, to 44,193.12, the S&P 500 (.SPX), opens new tab gained 45.87 points, or 0.73%, to 6,345.06 and the Nasdaq Composite (.IXIC), opens new tab gained 252.87 points, or 1.21%, to 21,169.42.
Also positive for stocks were increasing bets for a September interest rate cut from the Federal Reserve. Last week's jobs report showed slowing employment growth and downward revisions for previous months.
Minneapolis Fed President Neel Kashkari said on Wednesday the Fed may need to cut rates in the near term to account for a slowing economy.
Market expectations for a September rate cut of at least 25 basis points from the Fed stood at 95.2%, up from 92.9% in the prior session and well above 46.7% from a week ago, according to CME's FedWatch Tool.
Investors also awaited Trump's choice to fill a slot on the Fed's Board of Governors.
Bucking the day's trend, shares of chip company Advanced Micro Devices (AMD.O), opens new tab and server maker Super Micro Computer (SMCI.O), opens new tab fell sharply after the companies posted disappointing results in their data center segments. Advanced Micro was down 6.4% and Super Micro was down 18.3%.
Walt Disney (DIS.N), opens new tab delivered a strong quarter and lifted its full-year outlook, but its shares eased 2.7%.
Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the NYSE. There were 166 new highs and 76 new lows on the NYSE.
On the Nasdaq, 2,195 stocks rose and 2,377 fell as declining issues outnumbered advancers by a 1.08-to-1 ratio.
Volume on U.S. exchanges was 16.85 billion shares, compared with the 18.27-billion average for the full session over the last 20 trading days.
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