US STOCKS S & P 500, Dow Rise As Investors Digest Earnings, Rate Cut - kolei - git

Alphabet falls almost 8% after downbeat profits, heavy AI invest

Indexes: Dow up 0.47%, setiathome.berkeley.edu S&P 500 up 0.19%, Nasdaq down 0.07%

(Updates as of mid afternoon)

By Abigail Summerville and Shashwat Chauhan

The S&P 500 and the Dow rose on Wednesday, as financiers began to brush off disappointing Alphabet earnings and weighed the possibility of future rates of interest cuts from the U.S. Federal Reserve.

Google-parent Alphabet dropped 7.3% after publishing downbeat cloud income development on Tuesday and earmarking a higher-than-expected $75 billion investment for its AI buildout this year.

AI -related stocks showed indications of recovery after being rocked recently following the skyrocketing appeal of a low-priced Chinese artificial intelligence design developed by start-up DeepSeek. Nvidia, which signed up among the most significant losses, dokuwiki.stream was up 3.3% on Wednesday.

"Ultimately, demand is not going away for AI even with the DeepSeek news. They ´ re all going to need to invest more money and that ´ s what the AI story has been. This is a fairly long cycle story," said Rob Haworth, senior investment strategist at U.S. Bank Asset Management.

Advanced Micro Devices, on the other hand, lost 8.2% after CEO Lisa Su said the company's current-quarter information center sales - a proxy for its AI income - would fall about 7% from the previous quarter.

On the data front, financiers are expecting the January nonfarm payrolls report, anticipated to be launched on Friday.

U.S. services sector suddenly slowed in January in the middle of cooling demand, assisting curb price development, a report from the Institute for Supply Management revealed on Wednesday.

"There are some concerns that the Fed may need to ease quicker, that the economy is slowing, however that ´ s actually positive news for the markets because they ´ re searching for those Fed rate cuts," Haworth said.

The next Federal Open Markets Committee meeting remains in March, and alldogssportspark.com while just 16.5% of traders expect a rate cut then, a bulk of traders anticipate a cut in June, according to CME's FedWatch Tool.

Richmond Fed president Thomas Barkin said the Fed was still leaning towards more rate cuts this year, but flagged uncertainty around the impact of brand-new tariffs, migration, guidelines and other efforts from U.S. President Donald Trump's administration.

At 2:00 p.m. ET (1900 GMT), the Dow Jones Industrial Average increased 207.53 points, or bbarlock.com 0.47%, to 44,763.57, the S&P 500 gained 11.61 points, or 0.19%, to 6,049.49 and the Nasdaq Composite lost 12.91 points, or 0.07%, to 19,641.11.

Nine of the 11 S&P 500 sectors traded higher, with property and utility stocks leading the gains while interaction services tipped over 3%.

Shares of Apple slipped 1.2% as Bloomberg News reported that China's antitrust regulator was getting ready for a possible investigation of the iPhone maker.

Fiserv advanced 7.3% as the payments firm beat price quotes for fourth-quarter revenue, helped by strong demand in its banking and payments processing unit.

Markets also await developments on the tariffs front after Trump said on Tuesday he remained in no hurry to speak with Chinese President Xi Jinping to attempt to defuse a new trade war in between the nations.

The Cboe Volatility Index, called Wall Street's worry gauge, dropped 6.3% to 16.1 today.

In corporate movers, FMC Corp plunged 32% after the agrichemicals producer projection first-quarter profits listed below price quotes.

Johnson Controls jumped 12.5% as the building options business called Joakim Weidemanis as chief executive officer and raised its 2025 revenue projection.

Advancing issues surpassed decliners by a 2.62-to-1 ratio on the New York Stock Exchange, and by a 1.88-to-1 ratio on the Nasdaq.

The S&P 500 published 31 new 52-week highs and 12 new lows while the Nasdaq Composite recorded 100 new highs and 85 new lows.

(Reporting by Abigail Summerville in New York City, Shashwat Chauhan and Sukriti Gupta in Bengaluru