The Dow and S&P 500 closed higher after a late rally on Wednesday, erasing declines from most of the session after data showed the economy contracted in the first quarter for the first time in three years.

Market Snapshot

The Dow Jones Industrial Average rose 141.74 points, or 0.35%, to 40,669.36, the S&P 500 rose 8.23 points, or 0.15%, to 5,569.06 and the Nasdaq Composite lost 14.98 points, or 0.09%, to 17,446.34.

Market Movers

Shares in artificial intelligence and cloud-computing-related companies were rising sharply in late trade on Wednesday after Meta Platforms and Microsoft results beat Wall Street expectations.

The reports appeared to boost demand for shares in AI chip leader Nvidia Corp, which rose 3.9% in late trading, and chip rival Advanced Micro Devices , which rose 2%.

Shares in Amazon.com, which competes with Microsoft in cloud-computing and is due to report results on May 1, were up 3.4% with strong after-the-bell volume.

Shares in Microsoft soared more than 7% in late trading after it topped quarterly revenue expectations on strong Azure cloud-computing growth, reassuring investors its hefty AI investments were paying off.

Shares in social media company Meta Platforms were up more than 5%, after it also beat Wall Street estimates for first-quarter revenue, signaling that its AI-powered tools helped draw advertising dollars despite tariff-related economic uncertainty.

Super Micro Computer slumped 12% after the maker of artificial-intelligence servers said its fiscal third-quarter earnings would be well below previously-issued guidance. The company expects revenue of $4.5 billion to $4.6 billion compared with a prior estimate of $5 billion to $6 billion. Adjusted earnings in the period will be in a range of 29 cents to 31 cents a share, while analysts were expecting 53 cents. "During Q3 some delayed customer platform decisions moved sales into Q4," the company said. Super Micro's servers often house Nvidia chips.

Nvidia, the leading maker of AI chips, was flat following the guidance from Super Micro. Seaport Research analyst Jay Goldberg initiated coverage of Nvidia stock with a Sell rating and a price target of $100, citing the likelihood of the AI spending boom slowing in 2026 and difficulties of installing the company's latest hardware.

Tesla fell 3.4%, snapping its winning streak at six trading days. It had risen 28% over the period, which began the day before the company reported first-quarter earnings.

GE HealthCare Technologies was up 3.3%. The company reported better-than-expected first-quarter earnings but cut guidance for the year because of the impact of tariffs. GE HealthCare said it expects sales to grow 2% to 3% in 2025 but anticipates operating profit margins at about 14.3%, down from prior guidance of 16.7%.

Starbucks tumbled 5.7% after the coffee chain posted fiscal second-quarter earnings that missed Wall Street estimates on revenue of $8.8 billion that also came in below forecasts. U.S. same-store sales fell 2% in the period. "My initial optimism has turned to clear confidence," CEO Brian Niccol said in a statement. "We are where we should be at this point in our turnaround."

Seagate Technology rose 12% and was the best performer Wednesday in the S&P 500 as the data storage company reported fiscal third-quarter adjusted earnings of $1.90 a share, up from 33 cents a year earlier, and issued a forecast for the fourth quarter that was better than expected. Fellow data-storage company Western Digital rose 8%.

First Solar, the country's largest solar manufacturer, was down 8.3% after saying tariffs would significantly reduce revenue and earnings this year. The company also missed Wall Street's consensus expectations for the first quarter, reporting earnings of $1.95 a share versus estimates of $2.49.

Snap posted a narrower first-quarter loss than Wall Street expected but withheld its guidance for the second quarter. The stock fell 12%. Snap said in a letter to shareholders that it doesn't intend to share formal second-quarter guidance "given the uncertainty with respect to how macro economic conditions may evolve in the months ahead." Snap said its "topline revenue has continued to grow," but it as "experienced headwinds to start the current quarter, and we believe it is prudent to continue to balance our level of investment with realized revenue growth."

Norwegian Cruise Line fell 7.8% after missing earnings expectations for the first quarter. The cruise company reported adjusted earnings of 7 cents a share on revenue of $2.13 billion. Analysts were expecting profit of 9 cents on revenue of $2.15 billion. Norwegian maintained its full-year guidance for earnings of $2.05 a share but CEO Harry Sommer said the company "remains mindful of the evolving macroeconomic environment."

Market News

US Senate Rejects Bill to Rein in Trump Tariffs as Economy Contracts

An evenly split U.S. Senate rejected the latest bipartisan bid to block PresidentDonald Trump's tariffs on Wednesday, hours after the federal government reported that the nation's economy contracted for the first time in three years amid the chaos of the president's tariff policies.

Three Republicans joined Democrats to support the measure to terminate the national emergency that Trump declared as the basis for 10% global tariffs on U.S. trading partners and higher reciprocal tariffs on 57 trading partners including the European Union.

US Judge Rules Apple Violated Order to Reform App Store

Apple violated a U.S. court order that required the iPhone maker to allow greater competition for app downloads and payment methods in its lucrative App Store and will be referred to federal prosecutors, a federal judge in California ruled on Wednesday.

U.S. District Judge Yvonne Gonzalez Rogers in Oakland said in an 80-page ruling, that Apple failed to comply with her prior injunction order, which was imposed in an antitrust lawsuit brought by “Fortnite” maker Epic Games.