US stocks were mixed in midday trading Wednesday, with the Dow Jones Industrial Average's gains narrowing while the Nasdaq Composite and S&P 500 turned negative, as markets continued to digest corporate earnings and geopolitical developments. The Dow rose 414.17 points, or 0.77%, to 54,500.05; the Nasdaq fell 117.44 points, or 0.44%, to 26,467.56; and the S&P 500 declined 6.22 points, or 0.08%, to 7,730.30.

Traders processed a fresh batch of strong corporate earnings while expectations grew for a near-term reopening of the Strait of Hormuz. All three major indexes are on track for their best five-day performance since April 2025, following a sharp rally in the prior session where the S&P 500 closed above 7,700 for the first time and the Dow surged over 900 points to a new record. Over the past week, the S&P 500 has gained more than 6%, while the Dow and Nasdaq have risen over 5% and 9%, respectively.

The midday push to new highs was driven by Dow component Disney, which rose over 2% after better-than-expected fiscal third-quarter results, and Eli Lilly, which jumped 7% after the pharmaceutical giant reported second-quarter revenue and earnings that surpassed estimates. According to FactSet, these two reports added to an already strong earnings season, with over 84% of S&P 500 companies exceeding expectations.

Meanwhile, oil prices remained stable Wednesday. They fell Tuesday after U.S. Treasury Secretary Scott Bessent indicated that the U.S. and Iran may be close to a deal to reopen the Strait of Hormuz. September-delivery West Texas Intermediate crude was roughly flat at around $75 per barrel, while the international benchmark Brent crude for October delivery rose 1% to about $80 per barrel.

Investors shrugged off a 4% decline in shares of chipmaker AMD, which reported adjusted earnings per share only slightly above Wall Street expectations. NVDA 3xLongSG261006 shares plunged 12% after the rocket company released its first quarterly report since listing in June. Elon Musk's space company said second-quarter capital expenditures surged sixfold to $18.4 billion, above analyst expectations, with the majority of spending directed toward artificial intelligence.

Traders also largely ignored a weak July ADP employment report, which showed the private sector added just 44,000 jobs for the month, down from 95,000 in June and below the Dow Jones estimate of 75,000.