US stocks pushed higher on Wednesday to help the S&P 500 (^GSPC) notch a fresh high as AI trade fervor spread ahead of the Federal Reserve’s latest policy decision and earnings from megacap techs.

The S&P 500 moved up 0.3% to open above 7,000 for the first time, on the heels of a record close. The tech-heavy Nasdaq Composite (^IXIC) climbed about 0.6%, while the Dow Jones Industrial Average (^DJI) hovered above the flat line.

Techs are buoying markets again as a surprise record surge in orders for ASML's (ASML) chipmaking machines stoked optimism for a long-lasting AI boom. Shares in ASML popped, as did those in AI bellwether Nvidia (NVDA) and TSMC (TSM), which rely on the Dutch company's gear to produce chips.

That has turned up focus on earnings from Microsoft (MSFT) and Meta Platforms (META), which have invested heavily in an AI-focused data center buildout underpinned by those chips. The tech giants are scheduled to report results after the market close, alongside fellow "Magnificent Seven" megacap Tesla (TSLA). The reports sets the stage for Apple's (AAPL) quarterly update on Thursday.

Investors are also bracing for the Fed's first interest-rate decision of the year at the end of its two-day meeting later. It's expected to leave rates unchanged in a range of 3.5% to 3.75%, putting the spotlight on Chair Jerome Powell’s press conference comments for clues to future cuts. Markets are currently pricing in two quarter-point rate cuts by the end of 2026, according to CME FedWatch.

The recent slump in the dollar (DX-Y.NYB) could reshape those rate bets, given potential risks of a long decline to the economy. The US currency was stable early Wednesday, after sinking to its lowest level since 2022 on Tuesday after President Trump brushed off the deepest drop in the dollar since his sweeping tariffs launched.

The rate decision also comes amid a period of political tension for the central bank, as the Trump administration in recent weeks opened a criminal investigation against Powell over his Senate testimony about renovations of the central bank’s headquarters. Markets are also watching for President Trump to announce Powell's successor, which Trump has said could happen any day now.

Yahoo Finance's Brooke DiPalma reports:

Starbucks (SBUX) posted its first quarter of North America and US same-store sales growth in two years on Wednesday as the company continues its turnaround efforts under CEO Brian Niccol.

In its fiscal first quarter ended Dec. 28, Starbucks reported US and North America same-store sales rose 4%, topping estimates for a 2% rise. The increase was driven by a 3% increase in comparable transactions and a 1% increase in the average ticket.

Starbucks last reported positive same-store sales for its US and North America unit in the first quarter of its fiscal 2024. Starbucks stock rose about 7% following the results.

Overall, Starbucks reported adjusted earnings per share of $0.56, missing forecasts for earnings per share of $0.59. Revenue came in ahead of estimates, tallying $9.9 billion against expectations for $9.65 billion, according to Bloomberg data.

Read more here.

Amazon (AMZN) is making major cuts to it workforce — again.

The e-commerce giant announced plans to eliminate 16,000 roles. Amazon executive Beth Galetti said in a blog post Wednesday morning that the cuts are intended to reduce layers, increase ownership, and reduce bureaucracy.

Last October, Amazon shared plans to cut its workforce by roughly 14,000. Galetti said on Wednesday that this is not part of a larger reduction to its workforce, emphasizing plans to continue to hire and \\"invest in strategic areas and functions that are critical to our future.\\"

\\"Some of you might ask if this is the beginning of a new rhythm — where we announce broad reductions every few months. That’s not our plan,\\" she wrote.

The cuts come after CEO Andy Jassy said in late 2024 that he wanted the company to \\"operate like the world's largest startup.\\"

Amazon's stock ticked higher ahead of the market open on Wednesday.

This announcement also comes after the company announced plans to close its Amazon Fresh and Amazon Go stores to focus on delivery services and expanding Whole Foods, which Amazon acquired in 2017.

\\"While we've seen encouraging signals in our Amazon-branded physical grocery stores, we haven't yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion,\\" the company said in the release.

According to sources close to the matter, Amazon plans to evaluate each store to see which locations can be converted into Whole Foods stores.

AT&T's (T) stock rose 4% during premarket hours on Wednesday after forecasting annual profit above analysts' estimates. AT&T is betting on its wireless and fiber network expansion, which would allow the company to take advantage of the growing 5G and high-speed internet demand.

Reuters reports:

The bullish forecast hinges on AT&T's infrastructure push, anchored by two ‌major deals — a nearly $6 billion purchase of Lumen's consumer fiber business and a $23 billion acquisition of EchoStar's spectrum licenses.

The deals are expected to close early this year and help AT&T lure customers from rivals with faster ⁠internet speeds and improved ‌mobile coverage, capitalizing on demand for broadband as remote work, streaming and connected devices drive data consumption higher.

The ‍company said 42% of fiber households have also signed up for its 5G mobile service, drawn by discounts for bundling the services.

Read more here.

Elevance Health (ELV) stock fell 5% before the bell on Wednesday following a 2026 forecast for profit falling below Wall Street estimates.

​The health insurer said it expects higher medical costs ‌to persist into the year.

Reuters reports:

Health insurers have been battling persistently ‌high costs after a churn in enrollment in Medicaid, the U.S. government plans for low-income people, hit the industry. As states redetermined eligibility, many healthier ⁠members fell off ‌the rolls, leaving behind those who require medical services.

Demand for healthcare has remained ‍high over the last two years in areas such as behavioral health services, specialty drugs, leading to higher medical ​costs for insurers.

Read more here.

The dollar (DX-Y.NYB) hit pause after dropping to its lowest level since 2022 on Tuesday as President Trump said he wasn't concerned about the recent slide in the US currency.

Early Wednesday, the greenback traded little changed against a basket of other major currencies. But some Wall Street analysts warned the losses could become deeper and long-lasting.

From Bloomberg:

President Donald Trump’s relaxed tone about the dollar selloff is fueling speculation the US currency is at the start of a longer-term decline.

The dollar suffered its deepest one-day drop since last year’s tariff rollout after Trump said on Tuesday he didn’t think the currency had weakened excessively. Bloomberg’s dollar gauge slid as much as 1.2% as the comments sapped the appeal of the greenback and US Treasuries — boosting what has become known as the debasement trade.

For Stephen Jen, founder of Eurizon SLJ Capital, the Trump administration’s view of the dollar marks the start of a new phase of declines as they target an exchange rate that supports US exporters.

“This may very well be the beginning of the next leg lower in the dollar, and many may not be prepared for it,” Jen, a former Morgan Stanley currency strategist who developed the “dollar smile” theory, wrote in a note before Trump spoke. “There has been a generation of currency analysts accustomed to dealing with a strong dollar and a strong US economy, and unable to process the scenario of a weakening dollar and a strong US economy.”

Read more here.

ASML (ASML) US-listed shares climbed over 5% before the bell following a sharp jump in orders for its chipmaking equipment, stoked by Big Tech's big AI buildout push.

From Bloomberg:

ASML Holding's orders in the fourth quarter far exceeded analysts’ expectations, as the rapid development of artificial intelligence infrastructure boosted demand for its cutting-edge chip-making machines.

Bookings in the fourth quarter were a record €13.2 billion ($15.8 billion), driven by demand for its most sophisticated equipment, the Veldhoven, Netherlands-based company said in a statement on Wednesday. That compares with an average analyst estimate of €6.85 billion, according to data compiled by Bloomberg.

ASML is the only producer of cutting-edge lithography machines that are needed to make advanced semiconductors, and counts all the leading chip manufacturers as customers, including Taiwan Semiconductor Manufacturing (TSM) and Intel (INTC).

Its machinery is integral to producing the Nvidia (NVDA) AI accelerators that are the backbone for training and running AI models in data centers. The Dutch company’s bookings are one signal of chipmakers’ confidence in future AI demand.

Read more here.

Seagate (STX) stock rose 9% before the bell on Wednesday after forecasting third quarter revenue and profit above Wall Street estimates. The data storage company said it had benefited from strong demand for its data storage devices.

Softbank (9984.T) Tokyo shares rose more than 3% during premarket hours on Wednesday. Softbank is said to be in talks to invest an additional $30 billion in OpenAI (OPAI.PVT). The Japanese company is one of OpenAI's biggest investors.

Texas Instruments (TXN) stock rose 7% before the bell on Wednesday after forecasting higher revenue in the quarter ahead.

The FT reports:

Elon Musk has proposed timing SpaceX’s initial public offering to coincide with a rare planetary alignment and his birthday, as the world’s richest man seeks an auspicious date for what would be the largest listing in history.

The rocket maker is targeting mid-June for its IPO when Jupiter and Venus will appear very close together, known as a conjunction, for the first time in more than three years, said five people familiar with the matter.

SpaceX is seeking to raise as much as $50bn at a valuation of roughly $1.5tn, the people added, which would make it the largest IPO in history and far exceed the $29bn raised by Saudi Aramco in 2019. They cautioned that all figures remain preliminary and may change.

Read more here.

Bloomberg reports:

Texas Instruments Inc. (TXN) soared over 8 in late trading after giving a surprisingly robust forecast for the first quarter, indicating that demand for industrial equipment and vehicles is recovering from a rough patch.

Revenue will be $4.32 billion to $4.68 billion in the first quarter, the company said in a statement Tuesday. The midpoint of that range exceeded the average estimate of $4.42 billion. Profit in the period will be as much as $1.48 a share, compared with a projection of $1.26

The upbeat outlook signals that customers have worked through a backlog of inventory and are starting to make purchases again. Chief Executive Officer Haviv Ilan, who runs the largest maker of analog chips, said that orders improved through the fourth quarter.

Read more here.