Stock market today: S&P 500 rides Apple-led tech rally to close higher

Investing.com -- The S&P 500 jumped Wednesday, as Apple fueled a tech rally and investors cheered mostly bullish quarterly results. 

At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average gained about82 points, or 0.2%, the S&P 500 index rose 0.7%, and the NASDAQ Composite climbed 1.2%.

The main averages fell in the prior session, amid concerns about the health of the U.S. economy, especially in the wake of Friday’s weak jobs data. 

Apple leads tech higher; solid earnings seasons continues

Apple Inc (NASDAQ:AAPL) jumped more than 5% as tech giant is set announce plans to invest an additional $100 billion in  U.S. manufacturing, taking its total committed to $600 billion. 

Apple is set to make the announcement during a press conference schedule with President Donald Trump at the White House at 4:30 p.m. ET Wednesday.

On the earnings front, meanwhile, more than 80% of firms who have reported so far have beaten expectations.

A number of the companies in the blue-chip DJIA index have reported Wednesday, including McDonald’s (NYSE:MCD), with the burger giant’s global sales beat expectations for the second quarter, as affordable meal bundles and promotions drew in budget-conscious diners.

Walt Disney (NYSE:DIS) reported revenue from conventional TV networks and sports programming that fell short of Wall Street’s expectations, despite a strong performance from the company’s theme parks and streaming businesses.The media conglomerate’s ESPN sports broadcasting empire said it would launch a new direct-to-consumer streaming service on August 21.

Advanced Micro Devices (NASDAQ:AMD) stock fell after the chipmaker unveiled underwhelming quarterly revenue at its crucial data center business, especially when compared with AI-darling Nvidia (NASDAQ:NVDA).

Snap (NYSE:SNAP) shares plummeted as the social media company reported a weak quarter as mounting competition underscored the company’s struggle to keep pace with AI-driven peers.

Elsewhere, Spotify Technology (NYSE:SPOT) stock soared after the e-commerce company forecast third-quarter revenue above market estimates, as its AI features and platform upgrades boosted demand for its e-commerce services despite tariff-related uncertainty pressuring retail businesses.

Capri Holdings (NYSE:CPRI) stock climbed strongly after the fashion company posted a smaller-than-expected drop in quarterly revenue, helped by improving demand for its luxury handbags and footwear despite a broader retail slowdown.

Rivian Automotive (NASDAQ:RIVN) also struggled after the electric vehicle company’s second-quarter loss was worse than expected amid trade-related supply chain disruptions.

Economic weakness prompted concerns

Yet, despite the solid earnings, stocks have been mostly under pressure this week on concerns that the Trump administration’s volatile trade policies will hit economic activity in the world’s largest economy.

The Institute for Supply Management’s non-manufacturing purchasing managers’ index unexpectedly fell to a reading of 50.1 in July from 50.8 in the prior month, a disappointment given services make up about 80% of economic growth.

At the same time a gauge of input costs paid by these firms surged to its highest level in almost three years -- fueling worries that the U.S. may be entering a period of tepid growth and elevated price gains, known as "stagflation."

This economic weakness has raised expectations of a rate cut by the Federal Reserve in September, especially after last week’s weak payrolls data and comments from San Francisco Fed President Mary Daly, who signaled openness to a September cut.

There’s little in the way of first tier economic data due Wednesday, but investors will be monitoring comments from a series of Fed members later in the session, including Susan Collins, Lisa Cook as well as Daly once more, for clues about the U.S. central bank’s likely interest rate path going forward. 

Peter Nurse, Ayushman Ojha contributed to this article