Wall Street saw modest advances on Wednesday as gold continued its rapid ascent, surpassing the $5,300 per ounce mark in anticipation of the Federal Open Market Committee's upcoming discussions. This rally places gold up by more than 22% for the month, potentially recording its most significant monthly gain since January 1980. Silver also experienced an uptick, rising nearly 3% to reach $114 per ounce and on track for its best monthly performance ever, after a 59% increase year-to-date.
U.S. stock markets opened on a positive trajectory but cooled off as trading progressed. The S&P 500 index reached close to a new all-time high near 7,000 points before retreating approximately 30 points during midday in New York. The tech-focused Nasdaq 100 index outpaced other major indices, gaining 0.4% and briefly breaking above 26,000, edging closer to its record set in October.
Memory and Storage Stocks Lead Market Gains
The semiconductor sector, particularly memory and storage stocks, experienced significant appreciation following impressive earnings reports. Seagate Technology Inc. exceeded Wall Street's projections and raised its full-year guidance, citing ongoing global supply shortages and strong order backlogs fueled by intensifying AI demands. As a result, Seagate's shares surged nearly 20%, consequently lifting peer companies like SanDisk Corp. and Western Digital Corp., which gained 7.3% and 9%, respectively. Micron Technology also added over 5% to its share price. Since its February 2025 initial public offering, SanDisk has soared by more than 1,330%, highlighting the pronounced scarcity in the memory and storage market.
Federal Reserve Outlook and Currency Movements
The Federal Reserve is broadly anticipated to maintain interest rates steady within the 3.50% to 3.75% range, suggesting no imminent easing of borrowing costs. Market attention centers on Fed Chair Jerome Powell’s forthcoming press conference, especially in light of a recent criminal investigation into the Fed's building renovation project—an issue Powell characterized as a politically motivated attempt by former President Donald Trump to influence the central bank. Investors will examine Powell’s comments relating to the U.S. dollar, which recently dipped to a four-year low following Trump’s remarks expressing a lack of concern about the currency’s weakness. The dollar rebounded on Wednesday after Treasury Secretary Scott Bessent dismissed rumors of coordinated efforts to support the yen and reiterated a commitment to a strong dollar policy grounded in fundamental economic principles.
Energy Sector Advances on Geopolitical Tensions
Oil prices climbed above $62 per barrel amid warnings from former President Trump about a "massive armada" heading toward Iran, urging the nation to negotiate a fair agreement to prevent nuclear escalation. These developments bolstered energy stocks, which outperformed all sectors and were positioned for their best monthly results since October 2022.
Cryptocurrency and Market ETFs
In cryptocurrency markets, Bitcoin edged up 0.6% to approximately $89,500. Meanwhile, major exchange-traded funds showed mixed performance by midday: the iShares Russell 2000 ETF retreated 0.6%, the SPDR Dow Jones Industrial Average ETF remained nearly flat, while the Invesco QQQ Trust posted a modest 0.2% gain. The Vanguard S&P 500 ETF slightly declined by 0.1%. Sector-wise, the Energy Select Sector SPDR Fund led performance with a 0.7% gain, whereas the Health Care Select Sector SPDR Fund lagged, dropping 0.7%.
Earnings Highlights and Market Movers
Several companies reported notable earnings results influencing their stock movements. Texas Instruments gained over 9%, Seagate Technology surged nearly 20%, and NextPower climbed almost 15%. At the same time, some stocks saw declines: Amphenol Corporation dropped 12.3%, ASML Holding decreased 2.7%, and United Microelectronics lost over 8%. Other movers included AT&T, which rose 5.5%, Elevance Health advancing 6.6%, and MSCI Inc., up 5.6%. Several major companies like ServiceNow, Microsoft, Meta Platforms, and Tesla were scheduled to report earnings after market close, potentially driving further volatility.
Overall, markets demonstrated a dynamic interplay of bullish sentiment in precious metals and semiconductor stocks, tempered by cautious trading in broader equity indices ahead of key monetary policy announcements and ongoing geopolitical developments.