Stocks are mixed at midday Wednesday as Wall Street braces for this afternoon’s Federal Reserve policy decision and press conference from Chair Jerome Powell. The Dow Jones Industrial Average is outperforming, up 308 points or 0.76%, buoyed by strength in financials and industrials. The S&P 500 is inching higher by 0.33%, while the tech-heavy Nasdaq Composite is under pressure, down 0.1% amid sharp losses in big-cap tech.

Much of the divergence stems from moves in alphabet and apple, which are dragging on the S&P and Nasdaq. Shares of Alphabet are down more than 7% after Bloomberg reported that Apple may be exploring AI-powered search capabilities in its Safari browser. Senior VP Eddy Cue also revealed that Safari searches fell for the first time in April. Apple is also trading lower by nearly 2%. However, because neither Alphabet nor Apple is in the price-weighted Dow, the blue-chip index has remained insulated.

Elsewhere, sentiment got a modest boost from international headlines. The VIX volatility index dropped 1.7% to just over 24 after the U.S. announced that Treasury Secretary Scott Bessent will meet with Chinese officials in Geneva. This marks the first major summit since President Trump imposed the "Liberation Day" tariffs, raising hopes for de-escalation in U.S.-China trade tensions.

Macro data was light this morning, with only the weekly MBA mortgage applications report released. Mortgage applications rebounded by 11% after a 4.2% decline the previous week, but this did little to move the market as attention remains squarely on the Fed.

Sector and ETF Trends

ETF performance today is showing a clear risk-on tilt. Airline ETF JETS is up 1.87%, leading the day as investors rotate into travel and leisure. Bitcoin-related BITO is up nearly 1.8%, suggesting speculative appetite is firming. Retail (XRT), entertainment (PEJ), regional banks (KRE), and solar energy (TAN) are also posting strong gains, all rising between 0.8% and 1.2%.

Defensive sectors such as utilities (XLU), staples (XLP), and healthcare (XLV) are modestly positive, suggesting some lingering caution among investors. Tech-related ETFs like SMH (semiconductors) and IGV (software) are holding up, though upside is muted.

On the downside, metals and commodity-linked ETFs are under pressure. SLV (silver) is down nearly 1.8%, while GLD (gold) is off over 1%. The XME metals and mining ETF is also lagging, reflecting rotation away from inflation hedges. Energy ETFs (XLE, XOP, IEO) are trading slightly lower, suggesting concern over global demand.

Notable Stock Movers

• Alphabet (GOOGL) is the day’s biggest drag, plunging 8.2% after testimony from Apple’s Eddy Cue suggested traditional search engines are at risk from AI-powered alternatives. Cue disclosed that Safari searches declined in April.
• Apple (AAPL) is also down 1.51%, caught in the fallout. Cue's testimony is being closely scrutinized as a potential strategic pivot.
• AMD (AMD) is up 0.45% after beating Q1 expectations and guiding Q2 revenue above consensus. Data center revenue surged 57% YoY, reinforcing AI-related tailwinds.
• Disney (DIS) is soaring 11% after posting better-than-expected earnings and issuing strong forward guidance. The company reported adjusted EPS of $1.45, beating consensus of $1.19, and raised full-year profit forecasts. The experiences division, which includes theme parks, drove much of the upside.
• Super Micro (SMCI) is down more than 5% after issuing weak guidance and missing revenue expectations. Management cited customer delays and macro uncertainty.
• Marvell Technology (MRVL) fell 11% after postponing its investor day to 2026 due to macroeconomic conditions.
• Uber (UBER) dropped 1.68% despite reporting a surprise profit. Revenue missed slightly, and bookings growth, though solid, wasn’t enough to offset margin concerns.
• Arista Networks (ANET) declined 6.50% even after beating Q1 estimates. Forward guidance on margins raised investor concerns.
• Rivian (RIVN) and Lucid (LCID) both fell 3% after mixed earnings. Rivian cut its delivery outlook while Lucid missed revenue expectations despite better-than-feared EPS.

Looking Ahead

All eyes are now on the Fed. The policy statement is due at 2:00 p.m. ET, with Powell’s press conference beginning at 2:30 p.m. Markets widely expect the Fed to keep rates on hold, but investors will be laser-focused on any changes in tone, particularly around inflation risks, economic resilience, and tariff uncertainty. With the S&P 500 near all-time highs and volatility elevated, Powell's remarks could drive the next leg of price action into the close.

In summary, markets are cautiously constructive heading into the Fed. While tech weakness is weighing on the Nasdaq, broad-based participation in the S&P and strong gains in the Dow suggest underlying strength. Disney’s blowout report and signs of U.S.-China thawing are bright spots, though Fed risk looms large for the afternoon session.