Nasdaq up more than 1%, led by Apple gain

U.S. stocks rose on Wednesday, led by a more than 1% gain in the Nasdaq, as Apple shares climbed after news of its plans to announce a domestic manufacturing pledge, and as the latest batch of corporate reports was upbeat.

Shares of Apple were up 5.8% and provided the biggest boost to all three of the major indexes after a White House official said the company would announce a $100-billion domestic manufacturing pledge.

In addition, shares of McDonald’s were up 3.6% after the fast-food restaurant’s affordable menu drove global sales past expectations, while Arista Networks shares jumped 18% after the cloud networking company projected current-quarter revenue above estimates.

“Earnings continue to come in better than expected,” said Sam Stovall, chief investment strategist at CFRA Research.

He said while there is uncertainty surrounding tariffs, investors appear to be upbeat about the near term.

On Wednesday, U.S. President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi’s continued imports of Russian oil.

The Dow Jones Industrial Average rose 140.32 points, or 0.32%, to 44,252.06, the S&P 500 gained 49.86 points, or 0.79%, to 6,349.05 and the Nasdaq Composite added 254.12 points, or 1.22%, to 21,170.67.

Also positive for stocks were increasing bets for a September rate cut. Last week’s jobs report showed slowing employment growth and downward revisions for previous months.

Odds for next month’s rate cut stand at 93.2%, compared with just 46.7% last week, according to CME Group’s FedWatch tool. Traders also bet on at least two cuts by the end of 2025.

Among the day’s decliners, shares of Advanced Micro Devices fell 5.4% as its data center chip revenue disappointed.

Walt Disney delivered a strong quarter and lifted its full-year outlook, but its shares slipped 2%.

Advancing issues outnumbered decliners by a 1.1-to-1 ratio on the New York Stock Exchange. There were 145 new highs and 65 new lows on the NYSE.

On the Nasdaq, 2,057 stocks rose and 2,410 fell as declining issues outnumbered advancers by a 1.17-to-1 ratio.

Walt Disney posted better-than-expected quarterly results and raised its annual profit forecast on Wednesday, led by gains in the streaming business, which is expected to be the centerpiece of its growth strategy in coming years.

In the last 24 hours, the media and entertainment company entered two major deals with the National Football League and WWE as it readies its $29.99-per-month ESPN streaming service that will give viewers access to sporting events, including the NFL and National Basketball Association.

The entertainment giant is betting that combining its Disney+, Hulu and ESPN services into a single streaming app will fuel growth of its profitable streaming service and help offset declines in its traditional television business. The company estimates its direct-to-consumer business will generate operating income of $1.3 billion in the fiscal year that ends in September, up 30% from its original guidance.

“We’ll bundle that trio -- Disney+, Hulu and ESPN,” Disney CEO Bob Iger told investors, calling it “an opportunity to lower churn (and) increase engagement.” That bundle will also be offered at $29.99 as a one-year promotion.

Disney said its pivotal deal with the NFL, in which it will acquire the NFL Network and other media assets from the league in exchange for a 10% equity stake in Disney’s ESPN sports network, will allow the company to offer a more compelling experience for football fans. The deal needs regulatory approval.

The company also negotiated exclusive rights to major wrestling events, including WrestleMania and Royal Rumble in the streaming service, set to launch August 21.

“Expect the earlier-than-planned launch of Disney’s ‘ESPN’ streaming service to give Disney’s direct-to-consumer (DTC) business a notable lift in revenue,” said Forrester VP Mike Proulx.

“Disney is racing full force to sign sports rights with the company’s NFL and WWE announcements. This is yet another signal that the latest battle in the streaming war is all about live sports programming.”

Nonetheless, Disney’s stock fell 3 percent in early trading, reflecting investor concern about the performance of the traditional television business, which saw a 28 percent decline in operating income.

“Investors are aware of the decline in linear TV but it was worse than expected,” said Ben Barringer, head of technology research at Quilter Cheviot. “It is an industry-wide trend and very little can be done to arrest it.”