Gains for US stocks picked up pace on Wednesday in a sign that AI fears are waning, as investors digested the release of the Federal Reserve minutes from its January meeting.

The S&P 500 (^GSPC) added 0.8%, while the tech-heavy Nasdaq Composite (^IXIC) picked up 1.1%. The Dow Jones Industrial Average (^DJI), which is less exposed to tech, moved up 0.4% after the major US gauges closed Tuesday with modest gains.

Technology stocks are recovering composure after a turbulent stretch that saw software names in particular take a bruising. But while the pressure is easing, investors are still weighing the long-term impact of AI on business models and corporate competition, and whether AI investments will pay off.

The minutes of the Fed's January meeting minutes showed rate cuts could be in store this year if inflation comes down.

"In considering the outlook for monetary policy, several participants commented that further downward adjustments to the target range for the federal funds rate would likely be appropriate if inflation were to decline in line with their expectations," said the minutes.

The markets are currently pricing in at least two rate cuts this year. The watch is on for signs of AI fallout in the jobs market and on inflation ahead of the Personal Consumption Expenditures index reading for December due on Friday.

On the earnings calendar, DoorDash (DASH), eBay (EBAY), and Analog Devices (ADI) report results Wednesday.

Wendy's (WEN) stock rose as much as 17% on Wednesday after an SEC filing from activist investor Trian Partners said the company was exploring strategic alternatives for the company, including a possible deal to acquire the struggling fast food chain, in which it holds a roughly 16% stake.

In an updated 13D filing on Wednesday, Trian said it planned to exchange information with existing or potential co-investors and reach other agreements that would contemplate transactions \\"including an acquisition or other extraordinary transaction resulting in the Filing Person (and/or their affiliates), either alone or with other parties (including one or more Potential Partners), acquiring control of the Company, and which transactions could result in a de-listing or de-registration of the Company's Common Stock.\\"

As The Wall Street Journal noted Wednesday, Trian — led by Nelson Peltz — previously pushed for strategic changes at Wendy's in 2022 before changes at the company led Trian to back off these demands the following year.

Last week, Wendy's reported its global same-store sales fell 8.3% in the fourth quarter, which included a 10.5% decline in its US comp sales. Wendy's stock has lost over 40% in the last year.

Yahoo Finance's Jen Schonberger reports:

The Trump administration is disputing a new paper from the New York Federal Reserve asserting that US consumers and businesses are bearing the bulk of the higher costs from tariffs imposed last year.

\\"The paper is an embarrassment,\\" National Economic Council Director Kevin Hassett told CNBC on Wednesday. \\"I think it's the worst paper I've ever seen in the history of the Federal Reserve System. The people associated with this paper should presumably be disciplined, because what they've done is they've put out a conclusion, which has created a lot of news that's highly partisan, based on analysis that wouldn't be accepted in a first-semester econ class.\\"

Read more here.

Walmart (WMT) is set to release its first earnings report under new CEO John Furner in what should be a key reading for investors on the holiday shopping season. The retailer, which recently crossed $1 trillion in market cap for the first time, is expected to report adjusted earnings per share of $0.73 and revenue of $190 billion.

Yahoo Finance's Brooke DiPalma reports:

Walmart (WMT) is set to report earnings on Thursday morning, the first for its new CEO, John Furner, and a report that offers a readout of the key holiday shopping season after the company's market cap recently eclipsed $1 trillion for the first time.

The retailer is expected to report adjusted earnings per share of $0.73, per Bloomberg consensus data. Revenue is expected to increase nearly 6% to $190 billion.

Same-store sales for its US business are expected to grow 4.3%, driven by e-commerce strength, higher ticket sizes, and a slight uptick in foot traffic. E-commerce sales are expected to rise 19.8%, a moderation from the 28% growth seen in the third quarter.

Its wholesale retailer, Sam's Club, is expected to report that same-store sales rose 4.4% in the quarter.

Walmart stock is up more than 15% year to date.

Read more here.

Gold (GC=F) jumped 2% on Wednesday, reclaiming the $5,000 level as tensions between the Trump administration and Iran escalated and the odds of US. military action increased.

\\"The precious metals sector has so far been the primary beneficiary of heightened U.S. attack concerns,\\" wrote Ole Sloth Hansen, head of commodities strategy at Saxo Bank, in a post on X.

Gold futures rebounded from a 2% drop on Tuesday when Asian markets closed for the Chinese New Year.

Silver (SI=F) and platinum (PL=F) also rallied 6% and 4% respectively.

In addition to strains between the US and Iran, peace talks over the ongoing conflict between Russia and Ukraine appeared to falter.

Gasoline prices remained on track to notch their 12 consecutive week below $3 per gallon on Wednesday, though that picture could swing with the coming uptick in driving as warmer weather arrives.

Our Ines Ferré reports:

Gasoline prices were on track for their 12th consecutive week below $3 per gallon on Wednesday, with prices expected to rise as the spring driving season approaches.

As of Wednesday, at least 43 states posted average pump prices below the $3 mark, according to AAA data. The price of gasoline first dipped below $3 per gallon in December to hover near a four-year low.

Over the past month however, the national average has risen $0.10 from its four-year low to $2.92 per gallon.

\\"Gasoline prices have been moving up, predominantly following crude oil prices,\\" Andy Lipow, president of Lipow Oil Associates, said.

Still, the national average is about $0.24 lower than a year ago and expected to stay below last year's levels, even as prices climb heading into the spring driving season.

\\"This year is mired with a glut of crude and very little refining downtime, so I would imagine that we might expect about half the normal increase,\\" said Tom Kloza, analyst for Gulf Oil.

Read more here.

Transportation and logistics stocks plunged last week after a little-known company that historically sold karaoke machines published a press release saying its new AI-powered logistics platform was scaling clients' freight volumes by 300% to 400%. On this morning's Yahoo Finance Opening Bid, we spoke with the CEO of C.H. Robinson.

Yahoo Finance executive editor Brian Sozzi reports:

A logistics CEO is fighting back against the Great AI Scare of 2026.

\\"Leadership decisions are always made with a calm head. Understand the data, and understand what's going on. And I quickly found that at the end of the day at Robinson, we're just not going to let a moment of uncertainty really blur the difference between what is perception and reality. And the reality is this: We are the disruptor and not the disrupted,\\" C.H. Robinson (CHRW) CEO Dave Bozeman said on Yahoo Finance's Opening Bid.

Allow me to set the scene for you to provide some context for Bozeman's comments.

It's Feb. 12, 2026. Some random Florida-based holding company called Algorhythm Holdings (RIME) said it achieved a breakthrough on the AI front. It claimed that its AI platform scales freight volumes by 300% to 400% and reduces empty trucking miles by 70%.

Interesting at first pass.

No matter that nobody had heard of this company the day before. No matter that the company was better known for its karaoke machines and it was unclear when it pivoted to freight technology. No matter that the company is basically a penny stock that has no Wall Street analyst coverage, according to Yahoo Finance data. The market moved first and asked questions later, sending shares of trucking and logistics companies sharply lower.

Read more here, and watch below:

US industrial production increased in January by the largest month-on-month percentage since March 2025, according to data released Wednesday morning by the Federal Reserve Board.

Industrial production grew by 0.7% month on month, marking a steep jump over December's growth of 0.25%. Economists had expected growth of 0.4%, according to consensus estimates compiled by Bloomberg.

The industrial production figures were supported by strong growth in manufacturing, which grew 0.6% month on month compared to economists' estimates of 0.4% and last month's month-on-month loss of 0.02%.

Compared to a year ago, industrial production and manufacturing activity were up 2.3% and 2.4%.

Shares in Moderna (MRNA) jumped more than 6% in the first minutes of Wednesday's trading session after the US Food and Drug Administration agreed to review the drugmaker's first flu shot of the season, reversing course on a decision to reject the review last week.

Moderna recently developed a new flu vaccine using the same mRNA technique that underpins its COVID-19 vaccine. But after requesting review from the federal government, the FDA initially declined to review the drug — a necessary regulatory step toward bringing the drug to market — saying that it wasn't satisfied with Moderna's trials.

On Wednesday morning, however, Moderna announced in a press release that the FDA had reversed course and agreed to review the drug. The drugmaker said that, to expedite approval, it had proposed a \\"regulatory pathway based on age, seeking full approval for adults 50 to 64 years of age and accelerated approval for adults 65 and older.\\"

\\"We appreciate the FDA's engagement in a constructive Type A meeting and its agreement to advance our application for review,\\" said Stéphane Bancel, Chief Executive Officer of Moderna said in the statement. \\"Pending FDA approval, we look forward to making our flu vaccine available later this year so that America's seniors have access to a new option to protect themselves against flu.\\"

US stocks started Wednesday's trading session heading into the green as investors looked to Federal Reserve meeting minutes out later for guidance on its thinking around interest rates.

The S&P 500 (^GSPC), the tech-heavy Nasdaq Composite (^IXIC), and the Dow Jones Industrial Average (^DJI) all picked up roughly 0.2% to start the session.

The minutes of the Fed's January meeting are set for release at 2 p.m. ET, with traders continuing to price in at least two rate cuts this year as of Wednesday morning. The notes will set the stage for the next update on inflation, the Personal Consumption Expenditures index on Friday.

On the corporate front, DoorDash (DASH), eBay (EBAY), and Analog Devices (ADI) report results Wednesday.

MSG (MSGS) stock rose as much as 10% in premarket trade on Wednesday after the company said it was exploring splitting up the New York Knicks and New York Rangers, which it owns under the same corporate umbrella, Madison Square Garden Sports Corp.

The split would create two publicly traded companies. Both separate entities would also include minor league affiliates of each franchise.

“Both the Knicks and Rangers are premier teams in their respective leagues, with storied histories and large and passionate fan bases,\\" said Jim Dolan, exec. chairman and CEO of the company. \\"We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors.”

The Knicks are currently in third place in the Eastern Conference, a half-game behind the Boston Celtics. The Rangers are in last place in the Eastern Conference.

The pace of construction of new homes in the US rose to a five-month high in December as the housing market tries to show some signs of life with interest rates leveling out.

The number of new single-family homes under construction in December hit an annualized rate of 1.4 million homes, up 6.2% from November and ahead of forecasts for an annualized rate of 1.32 million homes, according to data from the Census Bureau. This pace of building, however, is still 7.3% below December 2024.

This report followed Tuesday's read on homebuilder confidence from the NAHB, which showed sentiment fell by another point to 36 this month, the lowest reading since September.

In an email on Wednesday, Alexandra Brown, North America economist at Capital Economics, wrote:\\"Even though homebuilders are still benefiting from the modest decline in mortgage rates over the past few months, this is unlikely to last. We expect the Fed to cut only once more this year.

\\"With almost three cuts currently priced into markets, financial conditions should re-tighten later this year as fewer cuts are realised,\\" Brown added.

\\"As a result, we do not expect the uptick in housing starts to be sustained throughout this year.\\"

Oil prices rose on Wednesday as traders priced in continued geopolitical risk and stringent sanctions after peace talks between Russia and Ukraine appeared to collapse after only two hours.

Futures on Brent crude (BZ=F), the international pricing benchmark, rose over 2% to trade around $69, while those on US benchmark West Texas Intermediate (WTI) crude (CL=F) picked up a slightly stronger 2.5% to trade around $63.80.

In comments after the talks ended, Ukrainian president Volodymyr Zelensky said the Russian delegation made the negotiations \\"difficult\\" and accused Russia of intentionally delaying progress toward a deal that could end the war between the two countries, according to Reuters.

Russia's chief negotiator, Vladimir Medinsky, also described the US-led talks, held in Geneva, Switzerland, as \\"difficult\\" in comments after the negotiations ended.

The oil market has, since the Russian invasion of Ukraine began four years ago, priced in an increasingly high-risk profile around disrupted Russian oil and gas exports. Surprise sanctions from the US Treasury late in 2025 against major Russia oil companies Rosneft and Lukoil have only furthered those tensions.

At the same time, traders are also closely watching the Middle East. While Iran's foreign minister said talks between Tehran and Washington had reached a potential framework for a deal on Iran's nuclear program, the X account for Ayatollah Ali Khamenei spent Tuesday posting incendiary comments about the deal, and Iran partially closed the Strait of Hormuz for several hours for naval military exercises.

The Strait of Hormuz is seen as Iran's biggest lever to pull in any conflict, as the strait sees roughly 20 million barrels of petroleum products per day traverse its waters.

Analog Devices (ADI) stock rose 6% before the bell on Wednesday following the release of its second quarter earnings, which beat analysts' estimates. The company cited strong demand from its industrial and data ‌center customers as the artificial intelligence boom continues ​to drive semiconductor sales.

Reuters reports:

The company forecast second-quarter revenue of $3.5 billion, plus ‌or minus $100 million, ⁠compared with the analysts' average estimate of $3.23 billion, according to LSEG ⁠data.

Surging investment in data center infrastructure for generative AI workloads is helping offset a ​challenging macroeconomic ​and geopolitical backdrop, ​supporting demand for ‌Analog Devices' semiconductors as hyperscalers expand capacity.

\\"While the macro and geopolitical backdrop remains challenging, our revenue outlook for the second quarter reflects a new high-watermark for ADI, underscoring ‌our strong execution against ​cyclical and secular growth ​tailwinds,\\" Analog Devices ​CFO Richard Puccio said.

Read more here.

The US stock market, typically considered the engine of the global economy, has struggled to find its footing through the first months of 2026, even as the rest of the world has surged ahead.

As a result, US stocks are off to their worst start to the year since 1995 relative to the global market, according to data from Goldman Sachs.

Yahoo Finance's Jake Conley reports:

While the S&P 500 (^GSPC), tracking the largest US companies, has fallen by 1% since the start of the year, an index tracking market returns throughout the rest of the global economy (ACWX) has returned 8%. The trend holds true over the past year, too, where the ex-US index has risen by 30%, triple the 10% return from the US over the same period.

And in an environment where geopolitical risk increasingly comes from inside the US — whether from the Trump administration's tariff regime, comments about an annexation of Greenland, or other moves — investor attention has turned toward the rest of the world.

\\"For global investors, the re-pricing of [the US dollar] and erosion of the spread between US's [equity risk premium] and others was brutal\\" in 2025, Viktor Shvets, the head of global desk strategy at Macquarie, wrote in a recent note to clients.

At the same time, even as the US market has far underperformed the rest of the world, US stocks just keep getting more expensive.

Read more here.

Divided fortunes for Apple (AAPL) stock and the Nasdaq 100 (^NDX) show the iPhone maker has been somewhat insulated from AI fear-induced volatility in techs despite its relatively high valuation, Bloomberg reports.

From Bloomberg:

It’s been nearly 20 years since Apple Inc. was this untethered from its tech peers, giving investors an appealing alternative to the artificial intelligence-fueled volatility that has gripped most other corners of the stock market in recent weeks.

Apple’s 40-day correlation to the Nasdaq 100 Index tumbled to 0.21 last week, the lowest since 2006, according to data compiled by Bloomberg.

Its correlation with the benchmark has been on the decline since May, when it reached 0.92, as Apple’s decision to mostly sit out the AI arms race has turned it into an outlier compared with many of its rivals. (A correlation of 1 means the two securities are moving in perfect unison, while a reading of -1 signals they are moving opposite each other.)

“Apple’s lack of correlation is 100% a positive right now,” said Art Hogan, who helps oversee $25 billion as chief market strategist at B. Riley Wealth. “We’re in an environment of AI whack-a-mole, where investors are so nervous about what will be disrupted next they’re shooting first and asking questions later.”

Read more here.

You might recall that shares of transportation logistics player C.H. Robinson (CHRW) were run over last week out of the blue. The company had no earnings report. Execs weren't presenting at an investment banking conference.

Instead, the stock was swept up in the AI sell-off after Algorhythm Holdings (RIME) said it had created software that made transport logistics way more efficient.

I think the sell-off was very overdone and in no way reflective of C.H. Robinson's impressive fundamentals. The company is at the forefront of using AI in its business. In fact, it has stripped a ton of costs from its business thanks to its first-mover advantage in AI.

You can find out what C.H. Robinson CEO Dave Bozeman has to say about it live on the Opening Bid show at 9:45 a.m. ET today. I expect Bozeman to fiercely defend his company, as he should.

Tune in here or on the Yahoo Finance mobile app.

Shares of The New York Times Co. (NYT) popped in premarket trading after Berkshire Hathaway (BRK-B, BRK-A) made a new multibillion-dollar investment in the publisher.

The fourth quarter move was seen as a vote of confidence in the NYT's strategy from Berkshire, which dumped holdings in dozens of newspapers in 2020. It's also one of Berkshire's last with Warren Buffett as CEO, after he handed the reins of the conglomerate to Greg Abel in January.

From Bloomberg:

Warren Buffett’s Berkshire Hathaway Inc. slashed its stake in Amazon.com (AMZN) by more than 75% in the fourth quarter, while also building a stake in the New York Times Co., his last new bet as chief executive officer of the conglomerate.

Omaha, Nebraska-based Berkshire acquired 5.1 million shares of the media publishing company in the three months through December, a stake worth $351.7 million at yearend, according to a regulatory filing Tuesday.

... Also in the fourth quarter, Berkshire continued trimming its stakes in Bank of America Corp. (BAC) and Apple Inc. (AAPL), bringing them to 7.1% and 1.5%, respectively. Buffett started cutting those positions in 2024.

Read more here.

Palo Alto (PANW) stock fell 7% before the bell on Wednesday after the company cut its full-year earnings outlook on Tuesday.

Western Digital (WDC) stock rose 2% during premarket hours on Wednesday following its annoucement that it will raise $3.17 billion by selling its stake in Sandisk (SNDK). Sandisk stock fell by 2% during premarket trading today.

SSR Mining (SSRM) stock rose by 7% before the bell on Wednesday after reporting higher fourth-quarter adjusted earnings and revenue. The mining company said it expects to see a 10% increase in its gold-equivalent production of 450,000 to 535,000 ounces from its Marigold, CC&V, Seabee, and Puna operations.

Shares of Nvidia (NVDA) rose in premarket trading as investors assessed fresh moves from the AI chip leader, including a boosted India AI build-out and the sale of its stake in chip tech firm Arm (ARM).

The highlight is news that Meta (META) has agreed to buy millions of Blackwell and Rubin GPUs alongside other Nvidia processors in the next few years, deepening their multiyear, multi-generational partnership.

Yahoo Finance's Daniel Howley reports:

The plan calls for Meta to use the products within its data centers for both training and running AI models.

Nvidia didn't reveal a dollar amount for the expanded deal, though it said that Meta will roll out the chips in its own data centers and lean on those available via Nvidia Cloud Partners. Nvidia's Cloud Partner program includes companies like CoreWeave (CRWV) and Crusoe, which host Nvidia chips for other companies to rent and use.

... In addition to the GPUs, Nvidia says Meta is rolling out its first large-scale Grace CPU-only servers with plans to launch Vera CPU-only systems in 2027. These would be similar to more traditional severs Meta operates using Intel chips and wouldn't include any GPUs.

That kind of move could prove problematic for Intel (INTC) and AMD (AMD), which have dominated the CPU server space for decades.

Read more here.

Japan plans to invest up to $36 billion in US oil, gas, and critical mineral projects, part of Tokyo's $550 billion commitment under the trade agreement it struck with President Trump last year.

“Our MASSIVE Trade Deal with Japan has just launched!” Trump posted on social media on Tuesday. “The scale of these projects are so large, and could not be done without one very special word, TARIFFS.”

Japan's Prime Minister Sanae Takaichi said that the projects will help build more resilient supply chains through partnerships in crucial areas for economic security.

Bloomberg News reports:

“We believe this initiative is fully aligned with its core objectives: promoting mutual benefits between Japan and the United States, ensuring economic security, and fostering economic growth,” she wrote.

The most significant investment is a natural gas facility in Ohio that’s expected to generate 9.2 gigawatts of power, according to a statement from US Commerce Secretary Howard Lutnick, a massive project which Trump described as “the largest in History.”

Japan is expected to invest up to $33 billion in the gas plant, which will be led by SoftBank Group Corp. subsidiary SB Energy, according to a US Commerce Department fact sheet outlining the investments. Japan’s Ministry of Economy, Trade and Industry listed SoftBank Group as the company involved in the project.

Read more here.