A rally for Apple leads Wall Street higher
[August 07, 2025] By
STAN CHOE
NEW YORK (AP) — A rally for Apple led Wall Street higher on Wednesday as
U.S. stocks reclaimed more of their sharp losses from last week.
The S&P 500 rose 0.7%. The Dow Jones Industrial Average added 81 points,
or 0.2%, and the Nasdaq composite climbed 1.2%.
Apple alone accounted for more than a third of the S&P 500’s gain. It
rose 5.1% ahead of a White House event where it was expected to
announced an increase to its U.S. investments of an additional $100
billion over the next four years.
Trading elsewhere on Wall Street was mixed following a jumble of profit
reports. McDonald’s and Shopify rose following their latest updates,
while Super Micro Computer tumbled after its earnings and revenue came
in below analysts’ expectations. The Walt Disney Co. fell after its
earnings beat forecasts but its revenue fell short
Worries are still high that President Donald Trump’s tariffs may be
hurting the economy, but hopes for coming cuts to interest rates by the
Federal Reserve and a parade of stronger-than-expected profit reports
from U.S. companies have helped steady the market.
Companies are under pressure to deliver bigger profits to justify the
big gains their stock prices have made since the U.S. market hit a low
point in April. The S&P 500 is only a bit below its record, which was
set late last month, and the big rally fueled criticism that the broad
market has become too expensive.
McDonald’s climbed 3% after reporting stronger profit and revenue for
the spring than analysts expected. Offerings tied to the “Minecraft”
movie proved to be a hit for the restaurant chain.
Shopify jumped 22% after the company, which helps businesses sell on the
internet, said it made more in revenue last quarter than expected.
Analysts also said the company’s forecast for revenue in the current
quarter suggests the strong trends are continuing.
Arista Networks leaped 17.5% after the networking company delivered a
bigger profit for the latest quarter than expected. Its forecast for
revenue in the current quarter also topped forecasts.
They helped offset an 18.3% slump for Super Micro Computer, which gave
back some of the huge gains the server maker has made recently. Super
Micro came into the day with a nearly 88% gain for its stock so far this
year, but it reported weaker profit and revenue for the latest quarter
than analysts expected. It also gave a forecast for profit in the
current quarter that fell short of what Wall Street had penciled in.
Disney dropped 2.7% after its profit beat forecasts but its revenue fell
short. Analysts said investors may have been looking for Disney to boost
its profit forecast by a bigger amount.
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Trader Vincent Napolitano works on the floor of the New York Stock
Exchange, Tuesday, July 29, 2025. (AP Photo/Richard Drew)
 The NFL also announced that it had
entered into a nonbinding agreement with Disney’s ESPN, which will
give the sports broadcaster the NFL Network, NFL Fantasy and the
rights to distribute the RedZone channel. The NFL will get a 10%
stake in ESPN in the proposed deal.
Chip company Advanced Micro Devices fell 6.4% after its profit for
the latest quarter only matched analysts’ expectations. Analysts
said the company’s financial forecasts for upcoming results also
looked solid, but that may not have been enough for investors after
its stock had already soared 44.3% for the year so far coming into
the day.
All told, the S&P 500 rose 45.87 points to 6,345.06. The Dow Jones
Industrial Average added 81.38 to 44,193.12, and the Nasdaq
composite jumped 252.87 to 21,169.42.
In the bond market, Treasury yields held relatively steady.
The yield on the 10-year Treasury remained at 4.22%, where it was
late Tuesday. It’s well below where it was last week, before
Friday’s weaker-than-expected report on the U.S. job market ignited
worries that Trump’s tariffs are pushing employers to hold back on
hiring.
That report has traders on Wall Street betting heavily that the
Federal Reserve will need to cut interest rates at its next meeting
in September. Such cuts can give the economy and investments prices
a boost, but they also can push inflation higher.
In stock markets abroad, indexes rose modestly across much of Europe
and Asia.
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
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