U.S. stocks opened on mixed footing Wednesday morning as investors digested a trio of pivotal events: a stronger-than-expected GDP report, the Federal Reserve’s looming policy decision, and a wave of corporate earnings—including closely watched tech names scheduled to report after the close.

At the opening bell, the Dow Jones Industrial Average edged down 13.64 points, or 0.03%, to 44,619. The S&P 500 added 2.95 points, or 0.05%, to 6,373.81, while the Nasdaq Composite rose 38.93 points, or 0.18%, to 21,137.2, reflecting early strength in growth stocks and a continued appetite for tech.

Markets Grapple with Fed Uncertainty

The Fed is widely expected to hold rates steady in the 4.25%-4.50% range at today’s Federal Open Market Committee (FOMC) meeting. But investors are looking past the decision itself and toward Chair Jerome Powell’s press conference at 2:30 PM ET for clues on whether a September rate cut is in play.

According to briefing notes, odds of a September cut stand at 64%, though Powell is likely to avoid committing to any particular path, maintaining the central bank’s data-dependent posture. “Upcoming PCE and jobs data will test Powell’s balancing act between inflation risks and political pressures,” the report noted.

Adding fuel to the political fire, former President Donald Trump lashed out on Truth Social following the release of the second-quarter GDP data: “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! ‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”

GDP Rebound Surprises to the Upside

Economic momentum appeared to rebound sharply in the second quarter. The Commerce Department reported that real GDP grew at an annualized pace of 3.0%, reversing a 0.5% contraction in the first quarter. The upside surprise was driven by a drop in imports and an acceleration in consumer spending, helping offset declines in business investment and exports.

Price pressures moderated slightly. The PCE price index—a key Fed gauge—rose 2.1%, down from 3.7% in Q1, while the core PCE index, excluding food and energy, increased 2.5%, also easing from the prior quarter’s 3.5%.

Corporate Spotlight: Palo Alto’s Bold Bet

Palo Alto Networks (PANW) made waves ahead of the opening bell, announcing a transformational $25 billion acquisition of CyberArk Software (CYBR). Under the deal, CYBR shareholders will receive $45 in cash and 2.2005 shares of PANW stock per share. The transaction marks Palo Alto’s entry into the privileged access management (PAM) space and reflects a 26% premium to CyberArk’s 10-day volume-weighted average price.

Wedbush analysts labeled it a “strategic home run,” describing the move as both an offensive and defensive push to build an all-in-one cybersecurity platform amid AI-driven threats. “This represents a key strategic poker move by the cyber stalwart,” the report stated, positioning Palo Alto to accelerate its platformization strategy and prompting expectations of further consolidation across the cybersecurity sector.

Earnings Roundup: Starbucks, Booking Holdings

Starbucks (SBUX) reported mixed results for its fiscal third quarter. Revenue rose 4% year over year to $9.5 billion, topping estimates, but adjusted EPS of $0.50 missed forecasts. Despite the earnings shortfall, shares climbed 2.7% in early trading as investors focused on CEO Brian Niccol’s turnaround progress. North America stabilized, and China posted its first positive sales growth in over a year.

Booking Holdings (BKNG) posted strong top-line results, with Q2 EPS of $55.40 beating estimates of $50.32 on $6.8 billion in revenue, up 16% year over year. Gross bookings jumped 13% to $46.7 billion, aided by strength in Europe and Asia. However, shares fell 2.7% in post-market trading Tuesday as investors reacted to cautious Q3 guidance and valuation concerns, despite raised full-year guidance.

Commodities Diverge

In commodities, crude oil for September delivery rose $0.29, or 0.42%, to $69.50 as of 9:17 AM ET, supported by tightening inventories and continued demand resilience. Gold, on the other hand, slipped $17.60, or 0.53%, to $3,306.40, as traders braced for Powell’s remarks and a potentially hawkish tone on inflation management.

Looking Ahead

Investors now turn their attention to earnings from Meta Platforms (META) and Microsoft (MSFT), both set to report after the market closes at 4:00 PM ET. With tech stocks helping lift the Nasdaq in early trading, results from these two giants could determine the broader tone for the rest of the week.