As of midday Wednesday, May 7, 2025, U.S. stock markets are trending higher, buoyed by strong corporate earnings and renewed optimism over U.S.-China trade relations. The Dow Jones<\/a> Industrial Average<\/b> is up 0.5%, adding approximately 225 points, while the S&P 500<\/a><\/b> has gained 0.4% and the tech-heavy Nasdaq Composite<\/b> is advancing 0.2%. Today’s market gains come after two consecutive days of losses, breaking a nine-session winning streak that was fueled by generally positive corporate earnings and hopes for a softer approach on tariffs from the Trump administration. The Consumer Discretionary sector is leading today’s gains, up 1.02%, followed by Financials at 0.67%, and both Health Care and Industrials advancing around 0.55%. Technology stocks are posting more modest gains at 0.22%, while Materials is the only sector currently trading in negative territory, down 0.38%. Market participants are closely watching the Federal Reserve’s interest rate decision expected at 2 p.m. ET today. According to CME’s FedWatch tool, there’s a nearly 97% likelihood that the central bank will hold borrowing rates steady. Investors will be particularly focused on Fed Chair Jerome Powell’s post-decision press conference for insights into the future path of interest rates and the central bank’s assessment of the economy. The meeting comes at a sensitive time, with recent criticism from President Trump, who has stated that Powell’s “termination cannot come fast enough,” though he later said he has “no intention” of removing the Fed chief. The Fed’s decision is especially significant as market participants weigh concerns that Trump’s proposed tariffs could push inflation higher, potentially complicating the central bank’s interest rate strategy.<\/p>\n Stock futures received a boost this morning after government officials announced that U.S. Treasury Secretary Scott Bessent and top trade official Jamieson Greer would meet with their Chinese counterparts this week in Switzerland. This development is viewed positively by investors who have been concerned about the potential economic impact of escalating trade tensions between the world’s two largest economies.<\/p>\n Walt Disney Co. (DIS<\/a>)<\/b> is today’s standout performer, surging over 10% after reporting better-than-expected quarterly results. The entertainment giant posted adjusted earnings of $1.45 per share on $23.62 billion in revenue, exceeding Wall Street expectations. Disney also raised its full-year earnings forecast to $5.75 per share and reported a surprise increase in Disney+ subscribers by 1.4 million during the quarter. Advanced Micro Devices (AMD<\/a>)<\/b> is gaining over 1% following strong quarterly results that beat analyst expectations. Rivian Automotive (RIVN<\/a>)<\/b> reported a narrower-than-expected first-quarter loss of 41 cents per share versus the anticipated loss of 80 cents. The electric vehicle maker posted revenues of $1.24 billion, beating estimates of $1.02 billion. However, Rivian has revised its 2025 delivery guidance downward to 40,000-46,000 vehicles from the previous 46,000-51,000 units, citing “evolving trade regulation, policies, tariffs and the overall impact these items may have on consumer sentiment and demand.” Uber Technologies (UBER<\/a>)<\/b> is down around 6% after missing revenue estimates despite beating earnings expectations.Upcoming Fed Decision Takes Center Stage<\/h2>\n
U.S.-China Trade Talks Boost Market Sentiment<\/h2>\n
Major Stock Movers Driving Today’s Action<\/h2>\n