Wall Street wrapped up Wednesday with solid gains, led by a powerful tech surge. The Nasdaq climbed roughly 1.2%, buoyed by Apple’s impressive leap following news of a 100-billion-dollar manufacturing commitment. The S&P 500 edged up about 0.7%, and the Dow added around 0.2%.

Apple’s Big Move Steals the Show

Apple shares jumped 5.1% after word spread of a huge domestic investment pledge, something a White House official confirmed was coming. That rally alone drove much of the market’s upside, giving a boost not just to Apple but to all three major indices.

Earnings Beat Expectation: McDonald’s, Arista, and the Crowd

Earnings season continues to surprise on the upside. McDonald’s gained around 3% as its affordable menu helped global sales beat expectations. Arista Networks delivered perhaps the day’s biggest surprise, rising 17.5% after projecting revenue well above estimates.

About 400 S&P 500 firms have reported so far, and roughly 80% have beaten analyst estimates. That is up from 76% in previous quarters. Earnings growth for Q2 is now estimated at 12.1%, nearly double what analysts projected earlier in July.

Caution Amid Optimism: Tariffs and Tech Weakness

Even amid the rally, there is tension under the surface. President Trump moved to pile on a fresh 25 percent tariff on Indian imports because of its continued purchases of Russian oil, increasing trade uncertainty.

Some key players underperformed. Advanced Micro Devices fell about 6.4%, and Super Micro Computer plunged around 18% after disappointing data center results. Disney also eased roughly 2.7%, despite delivering strong earnings and raising its outlook.

Betting on Lower Rates

Weak job numbers and signs of cooling hiring pushed expectations for a Fed rate cut higher. By midday Wednesday, markets priced in a 95% chance of a September rate reduction. That is up sharply from just under 47% a week earlier. Minneapolis Fed President Neel Kashkari’s comments that the central bank might need to act sooner only added fuel to the fire.

Quick Takeaways

• Apple’s 100 billion dollar pledge powered the day's rally
  
  
• Earnings surprises from McDonald's and Arista added fuel
  
  
• Rising Fed rate cut bets helped sustain the mood, even amid tariff worries
  
  
• Not every stock joined the party. AMD, Super Micro, and Disney delivered starkly mixed signals.

This is how it looks when markets rally. A few big headlines like Apple’s pledge, earnings beats, and Fed chatter stack together and push indexes higher. But under that optimism, trade policy and weak data still cast shadows.