Stocks flipped green midday after a choppy morning, with equities turning positive; at 12:25 p.m. in New York the S&P 500 was up 0.5% while the Nasdaq 100 was roughly flat. The cooldown in crude took some pressure off inflation worries, and bond yields moved lower.
Energy headlines were front and center. After a period of relative quiet, friction between the U.S. and Iran over authority in the Strait of Hormuz flared up, helping drive the latest surge in crude prices. On Wednesday, U.S. crude prices slipped below $90 a barrel, and energy shares steadied.
It has been a remarkably calm tape. Through Tuesday, the S&P 500 had gone 24 straight sessions without a 1% or larger daily drop, a stretch last seen in mid May when bets grew that the economy and earnings could stay sturdy as inflation eased. The index is sitting about 2.1% below its record high. The Cboe Volatility Index hovered near 15, a level that typically does not suggest market stress.
Hiring data gave traders more to chew on. Private payrolls showed companies added jobs in August at a slower clip, pointing to a steady but cooling labor market. Employers are still bringing people on, just not as fast as in the spring.
August's rise was the smallest since the year began, and it lands just ahead of Friday's Labor Department report. "The miss in ADP's numbers highlights downside risk to Friday's jobs report from the government," wrote Bill Adams, chief U.S. economist at Fifth Third Commercial Bank. "The ADP data show AI is affecting hiring less than other changes in the economy. Several industries where AI has obvious applications are adding jobs, while industries that seem insulated from it are cutting them."
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Earnings and outlooks drove the day's biggest swings. Dell Technologies climbed 7.8% after it lifted its annual sales outlook by $25 billion, crediting booming demand for servers that power artificial intelligence. GitLab jumped 13% after raising full year revenue guidance and topping the average analyst estimate.
On the downside, MongoDB slid 12% as growth in its Atlas product was seen missing lofty expectations. FuelCell Energy fell 17% after third quarter revenue missed the average analyst estimate. G-III Apparel dropped 9.4% after weaker than expected second quarter sales and a third quarter revenue forecast that also fell short. Credo Technology sank 18% even though its second quarter revenue outlook topped forecasts, a sign that a 44% year to date rally set a high bar.
Energy shares found a footing. Chevron Corp. gained 0.5% after dipping earlier, as crude's spike eased following Tuesday's jump. The company said it intends to invest $7 billion via joint ventures spread across a five-year span to lift Venezuela's crude production to more than double today's levels, the largest such commitment so far in a U.S. government-led bid to revive the country's oil industry.
Traders are now eyeing Broadcom's results after the close. Investors are hoping for an echo of last week's blowout from Nvidia, which projected 70% sales growth for its next fiscal year and recorded its strongest session since April 2025. Broadcom is the third-most valuable chipmaker, so expectations are naturally high.
Wednesday's move higher came from a simple mix: cheaper oil, softer hiring momentum, and some eye catching corporate updates. The calm backdrop helps too. If you are watching the market, the next catalysts are clear. The jobs report on Friday and Broadcom's update after the bell could reset expectations on growth and rates in a hurry.
