Apple's 5% Surge Drives S&P 500, Nasdaq Higher

The U.S. stock market closed higher on Wednesday, with Apple Inc. (AAPL) surging 5% and serving as a major catalyst for the day’s gains. The S&P 500 rose 0.73%, closing at 6,345.06, while the Nasdaq Composite climbed 1.21% to 21,169.42. The Dow Jones Industrial Average also saw modest gains, adding 81.38 points, or 0.18%, to end at 44,193.12. This marked a reversal from recent weakness, as the S&P 500 had fallen in five of the previous six sessions, and the Dow had declined in six of the past seven.

Apple’s strong performance came amid news that the company is planning a $100 billion investment in U.S. manufacturing and artificial intelligence, signaling a strategic shift in its capital allocation approach [1]. The move was interpreted by investors as a sign of long-term commitment to domestic infrastructure and innovation, helping to ease concerns over global supply chain risks and broader economic uncertainty [5].

Despite Apple’s positive performance, other major tech names faced sharp declines. Advanced Micro Devices (AMD) fell more than 6% after its earnings missed estimates, and it also failed to provide a clear timeline for resuming shipments to China, a market of strategic importance [2]. Super Micro Computer (SMCI) experienced a steeper drop, with its stock plunging 18% after missing both revenue and profit forecasts [3]. Similarly, Snap, the parent company of Snapchat, fell 18% after reporting weaker-than-expected advertising revenue [4].

Despite these setbacks, the broader market managed to finish in positive territory, as 81% of S&P 500 companies that had reported so far had exceeded Wall Street expectations, according to FactSet [7]. The market appears to be navigating a volatile period, with earnings reports and macroeconomic data continuing to shape investor sentiment [8].

Apple’s rise also had a ripple effect beyond U.S. markets. Asian investors reacted cautiously to the tech giant’s investment plans, considering the potential implications for global trade and manufacturing dynamics [9]. While the immediate impact was bullish, the long-term success of Apple’s strategy will depend on how well the investment translates into financial performance in the coming quarters.

The market’s positive close on Wednesday was also supported by developments in the banking sector. Reports emerged that Donald Trump is planning an executive action targeting “debanking,” a practice where financial institutions terminate relationships with clients due to political beliefs. The proposed rule could make such actions illegal and introduce penalties, offering some support to bank stocks [6].

Overall, the day’s performance highlighted the continued influence of Apple on both the tech sector and the broader equity market. While earnings season has brought mixed results, the company’s strong showing provided a much-needed lift in a week of volatility.

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Sources:

[1] title: S&P 500, Nasdaq lead stocks higher as Apple surges

url: https://finance.yahoo.com/news/live/stock-market-today-sp-500-nasdaq-lead-stocks-higher-as-apple-surges-133342640.html

[2] title: S&P 500 closes higher Wednesday as Apple lifts market

url: https://www.cnbc.com/2025/08/05/stock-market-today-live-updates.html

[3] title: Stock Market, Aug. 6, 2025: Dow, S&P 500 and Nasdaq ...

url: https://www.marketwatch.com/livecoverage/stock-market-today-dow-s-p500-nasdaq-called-higher-after-latest-dipuber-disney-earnings

[4] title: US stock market closes deep in the green even as AMD ...

url: https://www.cryptopolitan.com/us-stock-market-closes-deep-in-the-green/

[5] title: Stock Market Today: Dow Rises As Apple Soars

url: https://www.investors.com/market-trend/stock-market-today/dow-jones-sp500-nasdaq-amd-stock-earnings/

[6] title: Stock Market Today: Dow, S&P Live Updates for August 6

url: https://www.bloomberg.com/news/articles/2025-08-05/asian-traders-cautious-as-us-data-clouds-fed-path-markets-wrap

[7] title: S&P 500, Nasdaq lead stocks higher as Apple surges

[8] title: Stock Market, Aug. 6, 2025: Dow, S&P 500 and Nasdaq ...

[9] title: Asian traders cautious as U.S. data clouds Fed path