US equities advanced on Wednesday, with the S&P 500 reaching the 7,000 level for the first time, as investors positioned ahead of the Federal Reserve’s interest rate decision and a slate of earnings reports from major technology companies.
The benchmark index rose 0.3% and touched an intraday high of 7,002.28, marking a symbolic milestone for the market after years of gains driven largely by technology and artificial intelligence-related stocks.
The index has more than doubled from its pandemic-era lows, driven by strong corporate earnings, aggressive investment in artificial intelligence, and periods of supportive monetary policy.
The Nasdaq Composite climbed 0.7%, reflecting renewed strength in growth-oriented names, while the Dow Jones Industrial Average was little changed, trading up just 24 points.
AI-driven earnings lift sentiment
Gains on Wednesday were supported by a series of earnings reports and developments tied to the artificial intelligence boom.
US-listed shares of ASML rose about 1% after the Dutch semiconductor equipment maker reported record orders and issued strong guidance for 2026.
The company cited sustained demand for advanced chipmaking tools as AI-related investment continues to expand globally.
Storage infrastructure company Seagate Technology was another standout, with shares surging more than 13% after the company reported second-quarter earnings and revenue that exceeded expectations.
Chief Executive Dave Mosley pointed to robust demand for data storage driven by artificial intelligence workloads, reinforcing the view that AI investment is rippling across the semiconductor and hardware supply chain.
Beyond corporate earnings, semiconductor stocks also benefited from developments in China.
Reuters reported Wednesday that Chinese authorities have approved companies including ByteDance, Alibaba and Tencent to purchase Nvidia’s H200 artificial intelligence chips.
Nvidia shares rose roughly 2% following the report, with gains also seen in other chipmakers such as Advanced Micro Devices and Taiwan Semiconductor Manufacturing.
The approval eased some investor concerns around Nvidia’s access to the Chinese market, which has been a recurring source of uncertainty due to export controls and regulatory restrictions.
Federal Reserve decision today
Later in the day, attention is set to turn to the Federal Reserve, which is expected to announce its first policy decision of the year.
The central bank is widely anticipated to keep its benchmark interest rate unchanged at a target range of 3.5% to 3.75%.
While a pause is largely priced in, investors are expected to scrutinize the Fed’s statement and any accompanying commentary for clues about the longer-term path of monetary policy.
Futures markets suggest traders are currently pricing in two quarter-point rate cuts by the end of 2026, according to the CME FedWatch Tool.
The Fed’s decision comes amid a backdrop of easing inflation pressures, signs of stabilisation in the labor market, and heightened political scrutiny from the White House, with President Trump having repeatedly called for lower interest rates.
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