U.S. stock markets closed mixed on Wednesday as investors extended a rally sparked by easing trade tensions between the U.S. and China.
The S&P 500 edged up 0.1%, the Nasdaq rose 0.57%, and the Dow Jones Industrial Average declined 0.21%.
Technology stocks drove the gains. Nvidia climbed over 3% after announcing it would send 18,000 AI chips to Saudi Arabia. AMD gained more than 4% following a $6 billion share buyback. The Nasdaq is now up more than 6% this week, while the S&P 500 and Dow have gained 4% and 1%, respectively.
Positive China news
Markets continued to respond positively to a weekend agreement between the U.S. and China to reduce tariffs temporarily.
The U.S. lowered tariffs on Chinese goods to 30%, while China reduced duties on U.S. imports to 10%. The S&P 500, which had been in negative territory for the year, has now turned positive and is up more than 21% from its April low.
However, analysts caution that the rally may pause without further policy action. “The next leg higher will have to wait for policy initiatives that could provide tailwinds into 2026,” said Daniel Skelly of Morgan Stanley, according to CNBC
In individual movers, eToro jumped nearly 29% in its Nasdaq debut. Super Micro Computer surged 17%, building on earlier gains tied to a $20 billion Saudi data center deal. Boeing shares rose 2% after announcing a $96 billion aircraft sale to Qatar Airways.
Meanwhile, Tesla’s recent rally showed signs of overheating. S3 Partners flagged technical indicators suggesting near-term price pressure.
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