S&P 500 Fluctuates as Traders Brace for Alphabet, Tesla Results

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(Bloomberg) — US stocks swung between small gains and losses after chipmakers came off session lows and oil prices jumped on the escalation of the US-Iran war. Traders are also bracing for key earnings from Alphabet Inc., Tesla Inc. and International Business Machines Corp. due later in the afternoon.

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The S&P 500 Index was up less than 0.1% as of 11:06 am. in New York, with breadth divided almost evenly between gainers and decliners. The technology-heavy Nasdaq 100 Index drifted 0.1% lower, after falling as much as 0.8%. An exchange-traded fund tracking chipmakers erased premarket losses to rise 1.1%. Nvidia Corp. added 1.2%, paring early declines.

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Micron Technology Inc. also reversed losses to edged up 0.2% while memory storage company Sandisk Corp. rose 0.4%. Networking company Marvell Technology Inc. gained 2.7%. Among other individual shares, Super Micro Computer Inc. rallied 24% — the best S&P 500 performer Wednesday — after the server maker issued a business update that included raising its fourth-quarter gross margins outlook and saying the backlog was at a record.

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Energy shares were among the best groups in the S&P 500, advancing more than 1.5% as oil prices jumped, after the US and Iran signaled they aren’t ready to return to the negotiating table. Brent oil briefly spiked above $95.

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US stocks took a leg lower “as oil prices hit six-week highs overnight amid ongoing geopolitical angst surrounding the US-Iran war, but global equities are stabilizing as the fear bid in energy is beginning to show signs of near-term exhaustion,” wrote Tom Essaye, founder of “The Sevens Report” newsletter. 

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With AI spending skyrocketing, investors are looking for Alphabet’s earnings to show strong growth in its cloud-computing business. Intel will also give investors a read on how AI spending is reshaping the tech industry. Meantime, Tesla investors are watching for more information on the EV maker’s spending.

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Alphabet shares are down more than 10% since hitting a record in May. But among Mag Seven stocks, only Apple Inc., which has steered clear of the AI spending spree, and chip giant Nvidia have done better this year. Apple is readying an overhaul of its Mac line, seeking to capitalize on demand for powerful laptops and desktops fueled by the AI boom. Apple shares fell 0.7% on Wednesday.

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Advanced Micro Devices Inc. and Anthropic PBC have agreed on a deal for AI servers worth tens of billions of dollars, the Wall Street Journal reported. The deal will help bolster AMD in competing against industry leader Nvidia and provide Anthropic with essential computing power, the newspaper said. AMD shares rose 1.7%.

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Elsewhere, AT&T Inc. rose 3.3% after the telecom company reported second-quarter results that beat expectations on key metrics, including wireless postpaid phone net adds and adjusted earnings. GE Vernova Inc. fell nearly 6% — among the biggest S&P 500 decliners on Wednesday — after the power equipment manufacturer’s adjusted Ebitda narrowly missed expectations, with the company still facing weakness in its wind business.