U.S. Markets: Solid Earnings Balancing Ai Anxiety and Volatile Oil Prices

Barry Adams
28 Jul, 2026
New York City

U.S. stocks traded down on Wednesday, and investors awaited the release of quarterly results from key mega-cap companies this week. 

The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite fell 0.7% ahead of the Federal Reserve's rate decisions on Wednesday.  

Semiconductor stocks traded down in the previous session amid lingering worry over the sustainability of AI infrastructure spending by hyperscalers. 

The weakness in the U.S.-based chipmakers spilled over into Asian markets, and benchmark indexes in Japan fell 4%, in China decreased 2.2%, and in South Korea plunged 9%. 

The Federal Open Market Committee is widely anticipated to leave the reference rate unrevised between 3.50% and 3.75% at the end of a two-day policy meeting on Wednesday, and investors will seek greater clarity on the rate path for the rest of the year. 

Investors are still anticipating at least one 25 basis point rate cut before the year's end; however, the resurgent energy prices are clouding the rate outlook. 

The West Texas Intermediate crude oil price dropped 2% to $80.98 a barrel, after tumbling nearly 10% yesterday, amid hopes that tensions between the U.S. and Iran could cool further.   

On the earnings front, Coca-Cola, UPS, Boeing, and Corning are scheduled to release their quarterly results before the market opening.  

Coca-Cola reported better-than-expected results for the second quarter, and the beverage company hiked its annual outlook. 

UPS advanced 2% after the parcel delivery company reported higher revenue and lifted its full-year outlook. 

 

U.S. Movers

Rambus edged up 0.1% to $96.52 after the semiconductor company reported second-quarter results. 

Revenue increased 20% to $207.4 million from $172.2 million, net income advanced 17% to $67.6 million from $57.9 million, and diluted earnings per share rose to 61 cents from 53 cents a year ago. 

Product revenue increased to $99.2 million from $81.3 million, royalties revenue advanced to $84.2 million from $68.6 million, and contract and other revenue rose to $24.0 million from $22.3 million a year ago, respectively. 

The company also had licensing billings of $84.1 million, which is an operational metric that reflects amounts invoiced to its licensing customers during the quarter. 

The company estimated third quarter revenue to range between $210 million and $216 million, GAAP diluted earnings per share between 59 cents and 67 cents, and non-GAAP diluted earnings per share between 75 cents and 82 cents. 

Cadence Design Systems rose 2.5% to $347.00 after the electronics design software reported second-quarter results. 

Revenue increased to $1.6 billion from $1.3 billion, net income soared to $367.1 million from $160.1 million, and diluted earnings per share advanced to $1.33 from 59 cents a year ago. 

System design and analysis revenue increased 37%, driven by demand for PCB and advanced packaging solutions, and intellectual property revenue soared 40% from a year ago, respectively.  

The company estimated 2026 revenue to range between $6.26 billion and $6.34 billion, GAAP diluted earnings per share to range between $4.76 and $4.86, and non-GAAP diluted earnings per share in the range of $8.05 to $8.15.