S&P 500 Index: Disney Powers Dow, Alphabet Drags Nasdaq in Mixed Market Today

Stocks Mixed as Fed Decision Looms; Alphabet Drops While Disney Lifts Dow

U.S. equity markets traded mixed at mid-session Wednesday as investors held back ahead of the Federal Reserve’s policy announcement. While the Dow Jones Industrial Average advanced on strong gains from Disney, the Nasdaq lagged, dragged lower by a sharp decline in Alphabet shares.

How Are Major Indexes Responding Ahead of the Fed?

The Dow rose over 200 points, or 0.6%, supported by a double-digit surge in Disney shares following a stronger-than-expected earnings report. The S&P 500 held near flat, while the Nasdaq slid 0.3% as a 9% drop in Alphabet weighed on the index. Alphabet’s decline followed reports related to Apple potentially enhancing its AI search offerings—raising competition risks in the core search business.

What’s Driving Sector Action and Notable Stock Moves?

Communication services was the worst-performing S&P sector, down 2.3%, hurt by Alphabet’s sharp decline and pressure on Apple, which hit near two-week lows. On the flip side, the consumer discretionary and health care sectors showed strength, each rising over 0.7%.

Disney led Dow gainers with an 11% jump after posting a surprise increase in streaming subscribers. Charles River Laboratories spiked nearly 15% after raising its earnings forecast and resolving pressure from activist investor Elliott.

Meanwhile, Arista Networks tumbled 7% post-earnings, and Uber slid 2.2% on revenue disappointment. CrowdStrike lost over 4% despite reaffirming longer-term guidance, as it also announced job cuts.

What Are Traders Watching with the Fed in Focus?

The Fed is expected to hold rates steady this afternoon, with futures pricing in a near-certainty of no change. However, Chair Jerome Powell’s comments will be dissected for any signs of rate cut timing. Markets currently lean toward a potential cut by July, especially as recent data shows slower economic momentum but continued labor market resilience.

Political and trade developments are adding complexity. Treasury Secretary Scott Bessent confirmed upcoming preliminary U.S.-China trade talks in Switzerland, offering limited optimism. Uncertainty around tariffs remains a risk, particularly with concerns that new levies could spark renewed inflationary pressure.

What’s the Outlook from Here?

The market’s next move will hinge on Powell’s tone and any hint of easing bias. Elevated inflation expectations linked to trade policy and political scrutiny of the Fed are complicating its path. If inflation proves sticky, rate cuts may be delayed, keeping bond yields firm and equity valuations in check. Traders should stay alert to both Fed commentary and the weekend’s trade headlines for the next directional cue.

More Information in our Economic Calendar.