Wall Street closed Wednesday with broad gains across all three major averages, as a pullback in oil prices from session highs helped temper inflation concerns. The 10-year Treasury yield retreated from its intraday peak, allowing equities to rebound modestly and snap a three-day losing streak.

The S&P 500 rose 0.5% to 7,666.6, the Dow Jones Industrial Average gained 0.6% to 53,061.95, and the Nasdaq Composite climbed 0.5% to 26,217.83. Dell Technologies (DELL.US) surged 15.76%, United Continental advanced 3.56%, while Palo Alto Networks fell 9.28% and PG&E declined 5.23%. Among the "Magnificent Seven," Nvidia jumped 3.21%, Apple slipped 0.05%, Tesla added 0.26%, Meta Platforms rose 2.47%, Alphabet gained 0.53%, Amazon edged up 0.02%, and Microsoft dropped 0.84%.

European markets closed broadly lower, with the pan-continental Stoxx 600 index losing 0.49%. The UK's FTSE 100 and France's CAC 40 each slipped nearly 0.6%, Italy's FTSE MIB fell 0.5%, and Germany's DAX declined 0.7%. In Asia, Japan's Nikkei 225 tumbled 2.85% and South Korea's KOSPI shed 4%.

The US dollar index eased 0.11% to 99.51, marking its steepest intraday drop since August 21. Bitcoin traded down 0.25% at $77,285, while Ethereum fell 1.31% to $2,386.96. WTI crude touched a five-week high of $92.28 intraday before reversing lower, eventually closing up 0.88%, while Brent settled at $95.63, gaining 1.04%. Gold rose 1.2% to $4,381.68 per ounce, and silver climbed 1.9% to $65.32 per ounce.

Trump Signals Short-Lived Iran Strikes, Reaffirms Strait of Hormuz Control

President Donald Trump indicated that the renewed military strikes on Iran may not last long, while reiterating that the US controls the vital Strait of Hormuz. The latest US-Iran conflict had earlier pushed energy prices higher and reignited concerns over a prolonged war. Asked Wednesday how long the bombing campaign could last, Trump told reporters, "I don't think it will be very long." Brent crude eased to just above $95 following his remarks. Trump stated, "We destroyed all the new equipment they tried to deploy along the Strait of Hormuz—some of it defensive, some offensive. Last night's strikes were very powerful, and we are ready to launch another attack at any time." He also posted on Truth Social proposing to rename the strait after himself.

Fed's Beige Book Shows Moderate Growth Led by Data Center Demand

The Federal Reserve's latest Beige Book survey indicated moderate growth in US economic activity over the past two months, with robust data center demand emerging as a primary driver. Compiled by the Minneapolis Fed from information gathered through August 24 across 12 regional districts, the report noted that while views on energy prices and geopolitical uncertainty varied across industries, the overall economic outlook remained "positive."

Yen Spikes 1.2% Intraday, Renewing Intervention Speculation

The Japanese yen strengthened sharply against the dollar on Wednesday, surging as much as 1.2% to 158.22 per dollar, prompting immediate speculation that Japanese or joint US-Japan intervention was again underway. Adding to the pressure, Bank of Japan hawkish board member Soichi Takata delivered a more aggressive rate-hike signal, not only leaving the door open for larger increases but also mentioning scope for consecutive hikes. With the BOJ's September policy meeting approaching, market expectations for further tightening have intensified.

Treasury Secretary Bessent Voices Support for Japan's Decisive Yen Action

US Treasury Secretary Scott Bessent met with Bank of Japan Governor Kazuo Ueda on the sidelines of the G20 Finance Ministers and Central Bank Governors meeting. According to a US Treasury statement, Bessent strongly backed Japan's decisive market and currency measures to address the yen's significant undervaluation, noting that a weaker yen pushes up domestic inflation pressures. Bessent's public pressure puts BOJ Governor Ueda—who faces a policy decision this month—in an unusually precarious position amid risks of severe financial market turbulence. Ignoring Bessent's nearly explicit call for hikes could catch traders betting heavily on tightening off guard and trigger a sharp yen slide, which in turn would fuel inflation expectations already heading toward 3%.

ADP Report Misses Big: Private Payrolls Add Just 38K in August

US private sector employment rose modestly in August, according to ADP Research Institute data released Wednesday. Private payrolls increased by 38,000, with July's figure revised upward to 46,000. Economists surveyed had expected a gain of 48,000 for August, following the initially reported 44,000 increase in July. The data suggests employers are still hiring, albeit at a slower pace than in the spring, with August marking the smallest monthly gain since the start of the year.

Broadcom (AVGO.US) Revenue Jumps 86% on AI Surge, But Guidance Draws Mixed Reaction

In its fiscal third quarter, Broadcom posted net revenue of $295.91 billion, up 86% year-over-year and marking another record quarterly high, slightly above the ~$294.5 billion market consensus. Adjusted EPS rose 96% to $3.32, beating expectations by nearly 3%. AI remains the core growth engine, with AI semiconductor revenue up more than twofold year-over-year to $16.7 billion, up 54% sequentially and above analyst estimates of $15.93 billion. On the earnings call, the CEO raised the full-year AI revenue outlook to $58 billion, with expectations of nearly doubling next fiscal year and reaching $230 billion by fiscal 2028. Shares initially fell over 6% after hours before turning positive by more than 2% during the call.

Snowflake (SNOW.US) Raises Full-Year Outlook on AI Coding Tool Momentum

Snowflake shares surged more than 20% in after-hours trading Wednesday after the cloud data platform raised its full-year product revenue guidance, significantly exceeding Wall Street consensus, and highlighted the rapid adoption of its AI-assisted coding tool, CoCo. For the fiscal second quarter ended July, product revenue rose 37% to $1.49 billion, beating expectations of $1.42 billion. Total revenue reached $1.55 billion, up 35% year-over-year. The company now expects full-year product revenue for the period ending January 2027 to be approximately $6.07 billion, up from its May forecast and well above the analyst average of $5.86 billion.

Hewlett Packard Enterprise (HPE.US) Beats Q3 Estimates but Warns on Supply Constraints

Driven by robust demand for AI-related servers and networking equipment, Hewlett Packard Enterprise surpassed revenue and profit expectations and significantly raised its guidance for the current and next fiscal years. However, shares fell more than 8% in after-hours trading after management warned that supply limitations continue to constrain growth. The company reported fiscal third-quarter revenue of $12.21 billion, up 33.7% year-over-year and ahead of the $11.9 billion analyst forecast. Adjusted EPS came in at $1.11, well above the expected $0.93.

Microsoft (MSFT.US) Overhauls Reporting: Azure Revenue Disclosed Quarterly, New Segment Named "Agents and Infra"

Microsoft announced it will begin disclosing quarterly revenue for its Azure cloud business, which reached $29.4 billion in the latest quarter, reflecting continued expansion. Azure is widely viewed as a key barometer for Microsoft's AI business, and analysts have long struggled to value it precisely due to a lack of information. Additionally, the company restructured its financial reporting, merging cloud and Office operations into a new segment named "Agents and Infra," underscoring its AI strategic direction.

Meta (META.US) Unveils More Powerful AI Model, Claims Gap Narrowed

Meta on Wednesday released its most powerful AI model to date, Muse Spark 1.3, with Chief AI Officer Alexandr Wang stating its performance now matches or exceeds major rivals—a significant step in the social media giant's AI arms race. Wang said the model's coding capabilities surpass OpenAI's GPT-5.6 Sol and are on par with Anthropic's Claude Fable 5.1. The new model offers enhanced operational efficiency with 25% less token consumption and notably stronger agent capabilities. It will be available to developers on a paid basis and gradually integrated into platforms like Instagram and Facebook.