Stocks Mixed at Opening as AI Earnings and Fed Outlook Steer Markets

U.S. stocks opened with a split tone Wednesday as investors weighed another round of AI-driven corporate earnings against broader questions about growth and valuation.

The Dow Jones Industrial Average gained 27 points, or 0.06%, to 45,445.8, supported by strength in select blue-chip names. The Nasdaq Composite slipped 26.9 points, or 0.12%, to 21,517.4, dragged by weakness in technology shares, while the S&P 500 edged lower by 2.7 points, or 0.04%, to 6,463.25.

Commodity markets were also active at the open. Gold futures for December delivery dipped 0.03% to $3,432.10, while October crude oil rose 0.28% to $63.43, extending its rebound amid firming energy demand signals.

The tone in equities was set by fresh AI-related corporate updates. MongoDB shares surged 30% in pre-market trade after reporting fiscal Q2 results that beat Wall Street estimates, with revenue up 24% to $591.4 million and EPS of $1.00 versus $0.66 expected. Management raised full-year guidance, underscoring the company’s growing role as infrastructure for more than 8,000 AI-native startups. Analysts at Citi lifted their price target to $425, calling the quarter “thesis-changing.”

Investors are also bracing for Nvidia’s results after the bell, widely viewed as a bellwether for the AI trade. Angelo Zino of CFRA Research said in an interview with AInvest: “We’re looking at north of 50% growth, both here for the July quarter as well as for the October quarter,” while stressing that Q3 guidance and margins will be decisive.

Strategists remain divided on whether valuations can be sustained. Wedbush Securities analysts pushed back against bubble concerns, noting that while parallels exist with the late-1990s tech boom, “signposts are not flashing red yet.” They highlighted ongoing tax incentives, Fed rate cuts, and surging AI investment as supportive drivers.

Citi’s Scott T. Chronert, head of U.S. equity strategy, emphasized the structural backdrop , arguing in a recent podcast that “it’s longer-term earnings growth that aligns most closely with longer-term performance.” He pointed to mega-cap tech’s growing share of the S&P 500 and rising productivity metrics as justification for extended valuations.

The broader market backdrop remains complicated by political and macroeconomic uncertainty. President Trump’s ongoing trade measures continue to add volatility, even as investors lean on AI adoption and Fed policy signals as key supports for equities.

With the Dow clinging to modest gains and the Nasdaq under pressure, attention now turns to Nvidia’s earnings tonight—a potential inflection point not only for one of the market’s biggest names but for the AI-driven rally at large.