After a negative streak on Wall Street: The stock that surged

After a streak of three negative closes, investors on Wall Street finally got some relief. Trading on Wednesday ended with gains in all three leading indices, as the Dow Jones advanced by about 0.6% and crossed the 53,000-point level at the close. The S&P 500 index strengthened by about 0.5%, while the Nasdaq added about 0.4%.

One of the most prominent stocks was Dell, which surged following particularly strong reports and an increase in the annual forecast. The computing company recorded record revenue of $47 billion in the second quarter of the 2027 fiscal year, an increase of 58% compared to the same period. Earnings per share jumped by 273% and reached $6.34, while adjusted earnings amounted to $7.04 per share.

Behind the impressive results lies the expanding demand for artificial intelligence servers. Dell reported record orders of $60.9 billion for AI servers and a backlog of orders that reached $95 billion. The company even increased its annual revenue forecast by $25 billion, which now stands at $192 billion.

On the other hand, Palo Alto Networks recorded a sharp fall, even though it managed to beat analysts' preliminary expectations. Its quarterly revenue amounted to $3.41 billion, compared to a forecast of $3.35 billion, and net profit reached $1.02 per share against a forecast of 98 cents. However, according to generally accepted accounting principles, the company reported a loss of 35 cents per share, compared to a profit of 36 cents in the same period last year, a figure that helped explain the investors' reaction.

The pressure in the bond market remains one of the key factors occupying Wall Street. The yield on 10-year US government bonds touched 4.81% during trading, a level not recorded since November 2023, before falling slightly and closing at 4.78%. The high-yield environment makes the government channel more attractive and sets a high bar for the stock market.

Energy prices also added to the concern, against the backdrop of the escalation in tensions between the USA and Iran. The price of a barrel of Brent crude closed around $95.5, while US oil traded in the area of $90.5 per barrel. At the same time, the main stock exchanges in Europe ended the day with declines, as Frankfurt weakened by about 0.5% and London and Paris lost about 0.3%.

The Federal Reserve's Beige Book pointed to moderate growth in the US economy, alongside a moderate rise in prices and only a small addition to employment. Earlier, it was published that the US private sector added 38,000 jobs in August, less than the forecasts that stood at 47,000. Despite the signs of weakness and the fear of further energy price increases, all S&P 500 sectors ended with gains, except for the real estate sector, which weakened by about 0.8%.