U.S. stocks closed higher on Wednesday, August 6, as strong corporate earnings overshadowed mounting concerns over new tariffs set to be imposed by President Donald Trump.
The Dow Jones Industrial Average rose by 81.38 points (0.2%) to close at 44,193.12, while the broader S&P 500 gained 45.87 points (0.7%) to reach 6,345.06. The Nasdaq Composite led the rally with a 1.2% jump, climbing 252.87 points to finish at 21,169.42, boosted primarily by tech giant Apple.
Market Drivers:
- Apple shares rose 5.1% after the company unveiled a $100 billion investment plan in U.S. manufacturing infrastructure.
- Shopify stock soared 22% following earnings that significantly beat Wall Street expectations.
- Match Group, the parent company of dating platforms like Tinder and Hinge, gained over 10% after a strong earnings report. CEO Bernard Kim highlighted Hinge’s performance, saying, “Hinge is crushing it.”
Mixed Corporate Results:
- Disney beat earnings forecasts and raised its annual outlook, but the stock still slipped 2.7%.
- Honda Motor reported lower Q1 profits due to U.S. tariffs and losses linked to electric vehicles, but the automaker raised its full-year forecast. Shares rose 2.4%.
- Uber ended the session slightly lower despite announcing a stock buyback and an improved Q3 outlook. Revenue exceeded expectations, while profits aligned with forecasts.
- Bloomin’ Brands, which owns Outback Steakhouse and Bonefish Grill, missed earnings targets and lowered its forecast for the next year. Shares plunged nearly 33%.
Trade Tensions Escalate:
President Trump imposed a new 25% tariff on Indian imports on August 6 after trade negotiations failed. Other countries are rushing to finalize trade deals ahead of the August 7 deadline for further tariff announcements, which has contributed to market uncertainty.
Bond Market and Economic Data:
The benchmark 10-year U.S. Treasury yield rose by approximately 3 basis points, reaching 4.22%. Economic data was relatively light for the week, giving investors little new macroeconomic information to digest.
Cryptocurrency Update:
The U.S. Securities and Exchange Commission (SEC) clarified that liquid staking—a process where crypto holders stake assets via third parties and receive tokens in return—is not classified as a security under federal law. The announcement boosted sentiment in the crypto market, with Bitcoin trading up nearly 2%, hovering near $115,205 at the time of the report.
Overall, despite looming trade tensions, U.S. equity markets reflected investor optimism driven by strong corporate earnings and favorable news in the crypto sector. All eyes now turn to the White House’s next steps on trade policy as the August 7 deadline approaches.
