U.S. stocks were mixed on Wednesday as the second half of 2026 kicked off with fresh economic data, new comments from recently confirmed Federal Reserve Chair Kevin Warsh, and Thursday's upcoming June jobs report. The Dow Jones Industrial Average climbed about 0.6%, extending its record-setting rally, while the S&P 500 added roughly 0.2%.
The Nasdaq Composite lagged its peers, slipping around 0.2% as investors rotated out of select technology names despite continued optimism surrounding AI. Markets also kept a close watch on geopolitical developments after peace talks between U.S. and Iranian officials appeared to lose momentum, although easing oil prices helped cushion broader market sentiment.
Market Movers:
- Meta Platforms (META) +10%: Shares surged after reports that the company is developing a cloud computing business, dubbed Meta Compute, to monetize excess AI infrastructure. The initiative could allow Meta to offer AI models and computing capacity to enterprise customers, expanding beyond its core advertising business and placing it in direct competition with established cloud providers.
- General Mills (GIS) +9%: The packaged foods giant rallied after reporting fiscal fourth-quarter revenue and earnings that exceeded Wall Street expectations. Management also unveiled plans to generate $3 billion in cumulative cost savings by 2030 while increasing investment in product innovation and brand growth.
- Nike (NKE) +4%: Shares gained after the athletic apparel company delivered quarterly revenue and earnings above analysts' forecasts. Investors looked beyond ongoing sales declines in Greater China and focused instead on signs that the company's turnaround efforts are beginning to gain traction.
- Bloom Energy (BE) +3%: Shares moved higher after the company significantly expanded its financing partnership with Brookfield Asset Management from $5 billion to $25 billion. The increased funding will support AI infrastructure power projects as demand for reliable energy solutions continues to grow alongside data center expansion.
- Sandisk (SNDK) -8%: Shares fell despite receiving a higher price target from Bank of America, which maintained a bullish outlook on long-term NAND memory pricing. Investors instead appeared to take profits following the stock's strong run, even as analysts continued to forecast favorable supply-demand conditions through 2027.
- Papa John's (PZZA) -6%: The pizza chain declined after announcing a leadership transition in its finance department. While the company named a familiar interim chief financial officer, investors reacted cautiously to the unexpected executive change.
- Kroger (KR) -3%: Shares slipped after the grocery retailer announced a $1.65 billion acquisition of Giant Eagle. Although the transaction expands Kroger's presence across several Midwest markets, investors weighed the integration costs and lengthy timeline before the deal is expected to close.
- Constellation Brands (STZ) -2%: Shares edged lower after quarterly revenue fell short of expectations despite an earnings beat. Investors also focused on softer full-year earnings guidance, which overshadowed continued strength in the company's beer business and a higher free cash flow outlook.
Warsh Reaffirms Inflation Fight
Markets closely followed Federal Reserve Chair Kevin Warsh's remarks at the European Central Bank forum in Portugal, where he reiterated the central bank's commitment to restoring price stability without offering any direct guidance on future interest rate decisions. His comments, combined with stronger Treasury yields, reinforced expectations that the Fed remains focused on inflation even as investors continue debating the timing of potential policy changes. Attention now shifts to Thursday's employment report, which could significantly influence interest rate expectations heading into the second half of the year.
Manufacturing Remains in Expansion Mode
Fresh economic data offered another sign that the U.S. economy continues to demonstrate resilience. The Institute for Supply Management's manufacturing index remained above the key 50 level for a sixth consecutive month, signaling ongoing expansion despite coming in slightly below economists' forecasts. At the same time, input costs eased notably as the prices-paid index posted its largest monthly decline since 2022, helped by falling energy prices. The combination of continued manufacturing growth and moderating cost pressures offered investors a cautiously encouraging signal about the broader economy.
Oil Retreats as Peace Talks Stall
Energy markets remained volatile after reports indicated that negotiations between Washington and Tehran had lost momentum. While diplomatic discussions continue through international mediators, uncertainty surrounding a longer-term agreement kept investors focused on developments in the Middle East. Despite the diplomatic setbacks, crude prices moved lower as global supply concerns continued to ease. Brent crude fell below $72 per barrel while West Texas Intermediate traded under $69, reflecting optimism that oil flows through the Strait of Hormuz will remain largely uninterrupted.
Looking Ahead
Investors now turn their full attention to Thursday's June employment report, which arrives a day earlier than usual ahead of the Independence Day holiday. The labor market update could play a pivotal role in shaping expectations for Federal Reserve policy during the remainder of the year. Beyond economic data, markets will continue monitoring AI-related investment trends, corporate earnings guidance, and geopolitical developments in the Middle East. With the Dow continuing to notch record highs while technology stocks show signs of increased volatility, the second half of 2026 is beginning with investors carefully balancing economic resilience against lingering macroeconomic and geopolitical risks.