The S&P 500 climbed to a fresh record on Wednesday as stocks remain resilient despite a continuously cautious Federal Reserve and President Donald Trump's threat of more tariffs.

The S&P 500 rose 0.24%, settling at 6,144.15 and earning its second record close in a row. The index also touched a fresh all-time high during the session. The Nasdaq Composite added 0.07% to close at 20,056.25, while the Dow Jones Industrial Average advanced 71.25 points, or 0.16%, to end at 44,627.59.

Shares of Microsoft gained 1.3% and led the broader technology sector higher after the company unveiled its first ever quantum computing chip. Tesla climbed almost 2%. Analog Devices surged nearly 10% after posting better-than-expected quarterly results on the top and bottom lines.

Trump on Tuesday floated the notion of imposing a 25% tariff on imported autos, chips and pharmaceuticals. Trump did not specify whether the potential duties would be targeted or broad, but did say they could be implemented as soon as April 2.

"I think there's a lot of noise tied to DOGE, Elon Musk and tariffs in the short-term, which is what you're seeing today. And I think a lot of this stuff will linger," said Jim Elios, founder and chief investment officer at Elios Financial Group. "It's the Trump effect with headlines that are weighing on markets and causing some pain. In the long term, I'm still really bullish about how this can become a pro-business environment," added Elios.

Additionally, investors weighed the minutes from the latest Federal Reserve meeting, which showed that central bank officials want to see more progress on inflation before cutting interest rates further, and they are also concerned about the effect of Trump's tariffs.

S&P 500 notches another record close

The S&P 500 earned another record-high close on Wednesday as investors shook off worry tied to inflation and U.S. trade policy.

The broad market index added 0.24% to close at 6,144.15, while the Nasdaq Composite gained 0.07% to 20,056.25. The Dow Jones Industrial Average advanced 71 points, or 0.16%, to finish the session at 44,627.59.

— Brian Evans

Palantir falls as much as 12.9%, most in more than nine months, on defense spending worries

High-flying Palantir Technologies slumped as much as 12.9% Wednesday, on pace for its largest loss since May 2024.

The move followed a Washington Post report that the Trump Administration and its Defense Secretary Pete Hegseth are ordering senior Pentagon officials "to develop plans for cutting 8% from the defense budget in each of the next five years." 

Separately, Palantir filed notice with the U.S. Securities and Exchange Commission on Tuesday that CEO Alex Karp adopted a trading plan in mid-December allowing him to sell as many as 9.975 million shares through mid-September 2025.

Even with Wednesday's loss, Palantir remains 48% higher in 2025 after soaring 340% in 2024 and 167% in 2023.

— Scott Schnipper, Adrian van Hauwermeiren

Morgan Stanley raises its 'bull case' price target ahead of earnings

Walmart shares are trading near all-time highs ahead of the retailer's earnings Thursday morning, but Morgan Stanley is feeling very optimistic about its outlook. The firm raised its bull case price target to $153 per share. That is up 15% from its prior bull case price target and about 47% above where shares closed Tuesday. The firm's base case price target is $115.

Morgan Stanley analyst Simeon Gutman said he expects Walmart's alternative businesses such as its Walmart+ memberships, its third-party e-commerce business, its automation efforts and advertising from its retail media business to drive about 5% revenue growth and 12% earnings before interest and taxes growth over the next three years. His expectations also call for higher incremental margins, which will leave more room for reinvestment.

— Christina Cheddar Berk

Analysts applaud Nike deal with Skims

Analysts are optimistic about Nike's partnership with Kim Kardashian's Skims brand.

Nike on Tuesday announced a line of activewear with the intimate apparel maker. The brand will debut an initial collection this spring and be called NikeSKIMS.

"Athletic brands have a mixed track record with celebrity partnerships, but NikeSKIMS seems like a big win for Nike," said Cristina Fernández, senior research analyst at Telsey Advisory Group. "The association with Kim Kardashian can bring buzz to Nike by leveraging her 358MM Instagram followers — greater than Nike's 302MM — and younger and more fashion oriented female fan base," the analyst added.

"All in, the launch of NikeSKIMS is a positive for Nike as it undergoes a turnaround, but Nike still has a lot of work to do to clean inventories and bring energy to footwear products," Fernández added.

Anna Andreeva, senior research analyst at Piper Sandler, called the partnership an "outside-the-box" step to help the women's business and bring in younger customers.

— Alex Harring

Microsoft unveils first quantum computing chip, Majorana 1

On Wednesday, Microsoft unveiled its first quantum computing chip, Majorana 1, after spending nearly two decades of research in the field.

In the news release, Microsoft said this chip reveal showed that "quantum computers capable of solving meaningful, industrial-scale problems" are "years, not decades" away.

Quantum computers are set to one day disrupt existing computer systems since they are theoretically capable of efficiently solving problems that are considered near impossible for today's computers. They could also be used to build data and train artificial intelligence models, said Jason Zander, a Microsoft executive vice president.

"Now you can ask it to invent some new molecule, invent some new drug, something that really would have been impossible to do before," Zander told CNBC. He added that there is still more work to be done on the chip before considering "commercial reliability."

Quantum stocks rallied in response to the chip's release. Shares of BTQ Technologies surged 42%, while Rigetti Computing and D-Wave Quantum both popped 5%. Shares of IonQ followed with a 2% gain.

— Jordan Novet, Lisa Kailai Han

Apple unveils 16e iPhone model

Apple on Wednesday announced a cheaper iPhone model.

The company shared what is called the iPhone 16e, retailing for $599 and going on sale later this month. Notably, the iPhone will be powerful enough to run artificial intelligence technology.

Shares traded around flat in Wednesday's session.

— Alex Harring, Kif Leswing

Trump interested in new trade deal with China, New York Times reports

President Trump has expressed interested in striking a new trade deal with China, according to a report from The New York Times.

Per the report, Trump would call for greater investments and commitments from China to buy more American goods and services. He is also looking to include issues such as nuclear weapons security, per unnamed advisors cited in the report.

The trade deal Trump struck with China during his first term in office did not result in the stated targets. China only bought $288.8 billion, or 57%, of the $502.4 billion in American goods and services over the two years it committed to in the agreement.

— Hakyung Kim

The S&P 500 notched its last two all-time highs without the help of the 'Magnificent 7'

The S&P 500 notched two record highs this year with one notable group conspicuously absent: the "Magnificent Seven."

"The last two all-time highs for the SPX have happened without major help from the Mag 7," read a note from Oppenheimer & Co.'s trading desk. "That group's last all-time high was in mid-December."

That suggests a broadening out that is supportive of the bull run. The S&P 500 closed at an all-time high Tuesday for only the second time in 2025. Last year, the index closed at a record high 57 times, the note read.

— Sarah Min

Building permits rose slightly in January while starts tumbled

New construction data for January painted a mixed picture of the housing industry as the new year began.

Building permits nudged higher to a seasonally adjusted annual rate of 1.483 million, the Census Bureau reported Wednesday. The total was 0.1% above the December level and slightly better than the 1.45 million Dow Jones estimate, though down 1.7% from the same period a year ago.

On housing starts, the total of 1.366 million indicated a slide of 9.8% from December, though just 0.7% below January 2024. It was roughly in line with the forecast for 1.37 million.

— Jeff Cox

Stocks open lower

Stocks opened lower on Wednesday, with the S&P 500 pulling back from its most recent record high.

The broad market index slipped 0.22%, alongside the Nasdaq Composite. The Dow Jones Industrial Average declined 173 points, or 0.39%.

— Brian Evans

Nikola shares halted for trading

Nikola shares were halted for trading in the premarket after the struggling electric truck maker filed for Chapter 11 bankruptcy protection. The move comes after the once-favored auto startup failed to secure a buyer or raise additional funds.

The stock, which is down more than 95% over the past 12 months, was last trading for not even $1. It was up 5.9% before it was halted for trading.

— Sarah Min, Michael Wayland

Stocks making the biggest moves premarket Wednesday

Check out the companies making headlines before the bell:

• Capital One Financial, Discover Financial Services — Shares of Capital One gained 1.6%, while Discover Financial Services dipped 0.3%, after the two companies said their respective shareholders have voted to approve Capital One's acquisition of Discover.
• Toll Brothers — Shares fell more than 5% in the premarket after the homebuilder reported fiscal first-quarter results that missed the mark. The company earned $1.75 per share on revenue of $1.84 billion. Analysts polled by LSEG expected a profit of $2.04 per share on revenue of $1.91 billion. Home deliveries came in at 1,991, below a StreetAccount forecast of 2,060.
• Bumble — Shares tumbled 16.8% after the online dating platform issued weak first-quarter guidance. Bumble forecasts adjusted EBITDA to come in between $60 million and $63 million, and revenue in a range between $242 million and $248 million. Analysts polled by FactSet estimated adjusted EBITDA and revenue of $68.8 million and $256.9 million, respectively.

The full list can be found here.

— Hakyung Kim

KBW upgrades Travelers

Keefe, Bruyette & Woods moved off the sidelines on The Travelers Companies.

Analyst Meyer Shields upgraded shares of the insurance stock to outperform from market perform. Shields also raised his price target by $11 to $286, implying nearly 20% upside from Tuesday's close.

"We think TRV's scale and analytical advantages make it a valuable long-term holding for investors, but we expect rising earnings volatility and declining reserve releases to limit near-term upside," Shields told clients.

This call puts Shields in a less-popular position, as the majority of analysts surveyed by LSEG have hold-equivalent ratings. The stock, which is a member of the blue-chip Dow average, has pulled back about 1% so far in 2025.

— Alex Harring

Toll Brothers falls on disappointing earnings

Toll Brothers shares fell more than 5% in the premarket after the homebuilder reported fiscal first-quarter results that missed the mark.

The company earned $1.75 per share on revenue of $1.84 billion. Analysts polled by LSEG expected a profit of $2.04 per share on revenue of $1.91 billion. Home deliveries came in at 1,991, below a StreetAccount forecast of 2,060.

— Fred Imbert

BofA upgrades Capital One to buy

Bank of America turned bullish on Capital One, citing a plethora of catalysts for the stock ahead.

Analyst Mihir Bhatia upgraded the finance stock to buy from neutral. Bhatia also lifted his price target by $28 to $235, which now reflects the potential for shares to rise 15.9% above Tuesday's closing price.

Bhatia pointed to several potential inciting events to drive Capital One shares higher, including the bank's pending acquisition of Discover.

"A combination of Improving credit trends, pending acquisition-related revenue, and expense synergies as well as the potential for increased capital returns provide a cascade of catalysts that should excite investors and can provide near-term upside to Street estimates," he told clients. "We believe that acquisition synergies have the potential to outperform initial guidance given DFS' improved performance outlook and business changes."

Capital One shares popped 1.6% in Wednesday's premarket trading. The stock has climbed more than 13% in 2025.

— Alex Harring

Buy Stanley Black & Decker, Jefferies says

Jefferies is bullish on Stanley Black & Decker.

Analyst Jonathan Matuszewski initiated coverage of the tool maker at a buy rating. Matuszewski's $103 price target reflects 18.3% upside over Tuesday's closing level.

"We expect multiple expansion in 2H," Matuszewski said, using an acronym for the second half of the year. That comes "as the stock's narrative shifts from transformation to organic growth, and upward revisions to '26 Street EPS as investors embrace the idea that [management's] go-forward playbook for margin expansion adds to the profit improvement from 'heavy-lifting' since 2022."

Matuszewski also described the company as a "jack of all trades" with "top" brands. Shares are up more than 8% in 2025, regaining ground after sliding just over 18% in the prior year.

Matuszewski isn't popular on Wall Street. In fact, the majority of analysts polled by LSEG have hold ratings on the stock.

— Alex Harring

Asia-Pacific markets trade mixed as Trump proposes tariffs on autos, semiconductors and pharma goods

Asia-Pacific stocks traded mixed Wednesday after U.S. President Donald Trump proposed tariffs "in the neighborhood of 25%" on autos, semiconductors and pharmaceutical imports.

Japan's benchmark Nikkei 225 ended the day 0.27% lower at 39,164.61, while the broader Topix index fell 0.3% to 2,767.25. The country had reported a two-year-high trade deficit.

In South Korea, the Kospi ended 1.7% higher at 2,671.52, while the small-cap Kosdaq advanced 0.6% to close at 778.27.

Mainland China's CSI 300 ended the day 0.7% higher at 3,940.16, while Hong Kong's Hang Seng index ended the day 0.14% lower at 22,944.44.

Indian stocks snapped their losing streak, with the benchmark Nifty 50 and the BSE Sensex index trading flat in the last 1.5 hours of trade.

Australia's S&P/ASX 200 fell 0.73% to close at 8,419.20, a day after the country's central bank cut rates by 25 basis points to 4.10%, marking its first easing since November 2020.

— Amala Balakrishner

Europe stocks open mixed

European stock markets were mixed early Wednesday, with the regional Stoxx 600 index moving either side of the flatline.

Germany's DAX managed a 0.28% gain, while France's CAC 40 was 0.12% lower and the U.K.'s FTSE 100 dipped 0.26%.

— Jenni Reid

'Mag 7' winner Meta snaps winning streak

—Meta Platforms snapped its 20-day winning streak during Tuesday's trading session.

Shares of the Facebook and Instagram parent ended the day 2.76% lower at $716.37 a share. The stock is up 22.35% this year, making it the winning name of the "Magnificent Seven" group of U.S. megacap technology companies.

Pia Singh

Cadence Design, Bumble among stocks moving after market close

Check out the companies making headlines after the bell: 

• Howard Hughes Holdings — Shares slipped about 5% after Pershing Square's Bill Ackman upped his takeover offer for the real estate company, vowing to turn it into a "modern-day" Berkshire Hathaway. Ackman said Tuesday that his firm submitted a proposal to acquire 10 million newly issued Howard Hughes shares at $90 per share, higher than the $85 per share from January.
• Bumble — The online dating company's stock price plunged nearly 13% after Bumble gave disappointing first-quarter guidance. Bumble said it expects adjusted EBITDA to come out between $60 million and $63 million, and revenue to come out between $242 million and $248 million. Analysts polled by FactSet, meanwhile, expected adjusted EBITDA and revenue of $68.8 million and $256.9 million, respectively, for the period. Bumble's earnings and revenue for the fourth quarter still came out higher than Wall Street anticipated.
• Cadence Design — The electronic system designing company saw shares decline about 5%. Although the company's fourth-quarter earnings and revenue exceeded forecasts from analysts polled by LSEG, its full-year guidance came out below their calls. The company's CEO said Cadence saw record bookings and backlog in 2024.

For the full list, read here.

— Pia Singh

Stock futures open little changed Tuesday evening

Futures tied to the Dow Jones Industrial Average added 7 points, or 0.02%, shortly after 6 p.m. ET. S&P futures and Nasdaq 100 futures each gained less than 0.01%.

— Pia Singh