U.S. equity markets closed higher on Wednesday, recouping some recent losses, while United Airlines (UAL) delivered a mixed second-quarter earnings report. The Dow Jones Industrial Average unofficially closed up 204.31 points, or 0.46%, reaching 44,227.60. The NASDAQ Composite gained 56.97 points, or 0.28%, to finish at 20,734.77, and the S&P 500 rose 18.60 points, or 0.30%, to 6,262.36.
United Airlines (UAL) reported adjusted earnings per share of $3.87 for Q2 2025, surpassing analyst estimates of $3.84. However, the airline's revenue fell short of expectations, coming in at $15.2 billion against an estimated $15.33 billion. Revenue Passenger Miles (RPM) were 70.09 billion, below the estimated 70.81 billion, and Passenger Revenue stood at $13.84 billion, missing the $13.92 billion estimate. Cost per Available Seat Mile (CASM) ex-Fuel increased by 2.1% year-over-year to 12.36¢, while Passenger Revenue per Available Seat Mile (PRASM) declined 4.5% year-over-year to 16.40¢. United Airlines' Q2 2025 earnings call is scheduled for Thursday, July 17, 2025.
Federal Reserve official Raphael Bostic offered insights into the central bank's perspective on inflation and monetary policy. Bostic stated that he would "wait on cutting interest rates for now," noting that recent CPI data suggests "inflation pressures are building." He also highlighted that the full inflation impact from tariffs might not become clear until 2026, as businesses are employing "varied strategies to adjust prices" in what he described as "not a textbook tariff situation." Bostic emphasized that he prioritizes "things that actually matter" over news reports concerning the Fed.
Meanwhile, global trade tensions remained a focal point. Brazil's Vice President Geraldo Alckmin addressed the USTR investigation into Brazilian trade practices, stating, "We will explain" Brazil's position and emphasizing the "need for an urgent negotiation on U.S. tariffs." He added that it would be "good that this is resolved in the next few days." Brazil is currently awaiting a response from the U.S. regarding a new letter on tariffs. Former U.S. President Donald Trump also weighed in on tariffs, stating that a 20% tariff was imposed on China as a penalty for fentanyl, describing it as a "direct response to China's role in the fentanyl crisis." Trump also commented on the need to address "Mexico cartels" and stated, "We're working on some good news coming out of Gaza."
In other corporate news, OpenAI announced it would use Google's (GOOGL) cloud for ChatGPT, a strategic move to diversify its computing resources beyond Microsoft Azure and gain access to Google's Tensor Processing Units (TPUs) amidst surging AI demand. This partnership allows OpenAI to enhance its infrastructure and ensure platform stability, despite the competitive landscape between the two AI giants. Additionally, U.S. fund Apollo is reportedly in talks to invest in Atletico Madrid. The UN Security Council is scheduled to meet on Thursday to discuss Israeli strikes in Syria. Former President Trump denied plans to fire Federal Reserve Chair Jerome Powell, although he declined to completely reject the possibility while continuing to criticize the central bank chief. Separately, GOP leaders reportedly discussed adding CBDC prohibition language to FISA reform as a means to appease conservatives and advance crypto reform.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.