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Key Takeaways
- The S&P 500 advanced 1.7% on Wednesday, April 23, as comments from the White House pointed to stability at the Fed and the possibility of easing trade tensions.
- Amphenol, the manufacturer of antennas and high-speed cables, reported strong quarterly results and its share price climbed.
- Enphase Energy’s shares fell after the company missed its quarterly earnings estimates and said that tariffs might affect its future performance.
The major U.S. equity indexes rose after President Trump said he did not intend to remove Jerome Powell as Federal Reserve Chair. White House officials indicated that the U.S. might adopt a more measured strategy to tariffs on Chinese imports, suggesting an easing in trade tensions.
The S&P 500 added 1.7% in the midweek trading session, while the Dow closed 1.1% higher. The Nasdaq, a tech-heavy stock, rose 2.5%.
Amphenol (APH), which manufactures antennas and high-speed cables, exceeded revenue and adjusted earnings-per-share (EPS) expectations in its first quarter earnings report. The company provided a positive outlook for the current quarter. It noted opportunities across end markets, and highlighted how innovation and strategic purchases have helped expand its offering. Amphenol shares surged 8.2% to secure the top performance in the S&P 500 on Wednesday.
The technology sector performed better on Wednesday, thanks to increased optimism about improvements in the U.S. China trade relationship. Super Micro Computer announced a collaboration expansion with Japanese tech giant Fujitsu. Fujitsu plans to deploy a new Supermicro Server as part of the Large Language Model project (LLM). Supermicro shares jumped 7.6%.
Palantir Technologies (PLTR), meanwhile, saw its shares rise 7.3%. The data analytics firm announced that it will partner up with Northrop Grumman to develop combat vehicles using artificial intelligence (AI). Northrop Grumman’s shares rose 1.9% on Wednesday following a disappointing earnings report.
Shares of solar technology firm Enphase Energy (ENPH) plunged 15.7%, losing the most of any S&P 500 stock. Enphase’s CEO said that tariffs might affect future results. The company reported lower than expected sales and profit for the first-quarter. Enphase sources battery cells packs from China, and expects tariffs to impact its gross margins.
Lennox International’s (LII) quarterly sales and profits exceeded estimates, but its full-year forecast fell short of the consensus forecasts. Its shares fell 9.0%. Lennox CEO stressed that Lennox has made price adjustments to adapt to the challenging economic climate and maintain the stability in its supply chain.
Baker Hughes (BKR), a provider of oilfield technology and services, saw its shares fall 6.4% on Tuesday following a mixed release of quarterly earnings. The company’s profits exceeded forecasts but revenues were below expectations. The company is facing an uncertain macroeconomic background and a softening in oil prices which could hinder its client’s production activities.
