US STOCKS-S & P 500, Dow Rise As Investors Digest Earnings, Rate Cut

Alphabet falls almost 8% after downbeat revenues, heavy AI invest

Indexes: Dow up 0.47%, S&P 500 up 0.19%, Nasdaq down 0.07%

(Updates since mid afternoon)

By Abigail Summerville and Shashwat Chauhan

The S&P 500 and the Dow increased on Wednesday, as financiers began to brush off frustrating Alphabet revenues and weighed the possibility of future rate of interest cuts from the U.S. Federal Reserve.

Google-parent Alphabet dropped 7.3% after publishing downbeat cloud revenue growth on Tuesday and allocating a higher-than-expected $75 billion financial investment for its AI buildout this year.

AI-related stocks revealed indications of recovery after being rocked recently following the soaring popularity of an inexpensive Chinese artificial intelligence model developed by start-up DeepSeek. Nvidia, which signed up among the biggest losses, was up 3.3% on Wednesday.

"Ultimately, demand is not disappearing for AI even with the DeepSeek news. They ´ re all going to have to spend more money which ´ s what the AI story has been. This is a fairly long cycle story," said Rob Haworth, senior financial investment strategist at U.S. Bank Asset Management.

Advanced Micro Devices, meanwhile, lost 8.2% after CEO Lisa Su said the company's current-quarter data center sales - a proxy for its AI income - would fall about 7% from the previous quarter.

On the data front, financiers are expecting the January nonfarm payrolls report, anticipated to be launched on Friday.

U.S. services sector activity suddenly slowed in January in the middle of cooling need, assisting curb rate growth, a report from the Institute for Supply Management revealed on Wednesday.

"There are some concerns that the Fed may need to alleviate much faster, that the economy is slowing, but that ´ s really positive news for the marketplaces due to the fact that they ´ re trying to find those Fed rate cuts," Haworth said.

The next Federal Open Markets Committee meeting remains in March, and while just 16.5% of traders expect a rate cut then, a majority of traders expect a cut in June, according to CME's FedWatch Tool.

Richmond Fed president Thomas Barkin said the Fed was still leaning towards more rate cuts this year, however flagged uncertainty around the impact of new tariffs, migration, guidelines and other initiatives from U.S. President Donald .

At 2:00 p.m. ET (1900 GMT), wiki.myamens.com the Dow Jones Industrial Average rose 207.53 points, or 0.47%, to 44,763.57, the S&P 500 gained 11.61 points, or 0.19%, to 6,049.49 and the Nasdaq Composite lost 12.91 points, or 0.07%, to 19,641.11.

Nine of the 11 S&P 500 sectors traded higher, with realty and utility stocks leading the gains while communication services tipped over 3%.

Shares of Apple slipped 1.2% as Bloomberg News reported that China's antitrust regulator was preparing for allmy.bio a possible examination of the iPhone maker.

Fiserv advanced 7.3% as the payments firm beat price quotes for fourth-quarter revenue, assisted by strong need in its banking and payments processing unit.

Markets likewise await advancements on the tariffs front after Trump said on Tuesday he remained in no hurry to speak to Chinese President Xi Jinping to attempt to pacify a brand-new trade war in between the countries.

The Cboe Volatility Index, users.atw.hu known as Wall Street's fear gauge, dropped 6.3% to 16.1 today.

In business movers, wiki.myamens.com FMC Corp plunged 32% after the agrichemicals producer projection first-quarter income below quotes.

Johnson Controls leapt 12.5% as the building options business called Joakim Weidemanis as ceo and raised its 2025 revenue projection.

Advancing issues outnumbered decliners by a 2.62-to-1 ratio on the New York Stock Exchange, and by a 1.88-to-1 ratio on the Nasdaq.

The S&P 500 published 31 brand-new 52-week highs and 12 new lows while the Nasdaq Composite taped 100 brand-new highs and users.atw.hu 85 new lows.

(Reporting by Abigail Summerville in New York, Shashwat Chauhan and Sukriti Gupta in Bengaluru; Editing by Pooja Desai, Devika Syamnath, Maju Samuel and Nia Williams)