U.S. equity markets experienced modest gains on Wednesday, with the Dow Jones Industrial Average approaching an all-time high. The market movements were influenced by the earnings calendar, while the Federal Reserve entered a “quiet period” ahead of its upcoming two-day policy meeting starting on July 29, 2025.
President Donald Trump criticized Fed Chair Jerome Powell following the release of June housing data, which indicated a continuing slowdown in the housing market. Trump took to Truth Social to blame Powell for the situation, stating, “Housing in our Country is lagging because Jerome ‘Too Late’ Powell refuses to lower Interest Rates.”
The National Association of Realtors reported a decline in housing sales as home prices reached record highs in June, exacerbating affordability issues. It is important to note that mortgage rates generally follow market-based U.S. Treasury yields rather than the central bank’s monetary policy.
As the yield on the 10-year U.S. Treasury note climbed to 4.388% on Wednesday, up from 4.336% the previous day, the 2-year note yield also increased to 3.886%, reflecting sensitivity to Federal Reserve policy. Meanwhile, the 30-year yield edged closer to the significant 5% mark, rising to 4.944% from 4.903%.
By the end of trading, the Dow Jones Industrial Average had gained 1.1% to reach 45,010, while the S&P 500 increased by 0.8% to close at 6,358. The Nasdaq Composite saw a rise of 0.6%, finishing at 21,020. Notably, the Dow is now just four points shy of a new record high, while both the S&P and Nasdaq achieved fresh closing highs.
Corporate Earnings Drive Market Trends
In the corporate sector, GE Vernova’s stock surged by 14.6% following a strong earnings report that exceeded expectations. The company also raised its full-year guidance, driven by robust performance in its gas power division, according to analyst Julien Dumoulin-Smith from Jefferies. He noted that despite a previous downgrade, his 12-month target price for GEV has increased to $565, reflecting optimism about the company’s future.
Investor interest in GE Vernova is partly fueled by the growing demand for energy solutions associated with artificial intelligence infrastructure development. Among financial analysts who track the stock, 24 rate it a Buy, with an average target price of $511.75.
Japanese automakers also made headlines as stocks for Honda Motor and Toyota Motor rose sharply, gaining 13.1% and 13.7% respectively. This increase followed Trump’s announcement of a tariff deal with Japan, highlighting how international investments can influence domestic stock performance.
In the wake of this news, domestic automakers enjoyed a boost, particularly as General Motors announced it would not raise prices to offset the impact of the new tariffs.
Emerging Trends in Energy and Technology
The nuclear energy sector also saw movement, with shares of Oklo rising 9.3% after a partnership was announced with Vertiv Holdings to develop power and cooling systems for AI data centers. This collaboration is indicative of a broader trend in energy investments as the demand for advanced power solutions grows.
Oklo, which recently completed its IPO, is focused on developing advanced fission power plants that promise clean and reliable energy. The company’s stock jumped 23% following the signing of executive orders by Trump aimed at advancing nuclear energy initiatives.
As markets continue to react to both corporate earnings and macroeconomic factors, investors remain vigilant ahead of the Federal Reserve’s policy meeting next week. The outcomes of these discussions will likely play a critical role in shaping market expectations and influencing future economic conditions.
