The S&P 500 Index and Nasdaq Composite were both up in late-morning trading Wednesday, while the Dow Jones Industrial Average was roughly flat, as the Federal Reserve is expected to announce its first rate hike in three years this afternoon.
In company news, SK Hynix (SKHY) is exploring a deal with Intel (INTC) to manufacture its memory chips in the US for the first time, Reuters reported Wednesday, citing three people familiar with the discussions. The South Korean company could potentially lease part of Intel's future chipmaking facility in Ohio or form a venture with Intel and major cloud firms interested in securing memory chip supplies, the report said. Following the report, SK Hynix issued a press release stating that no plans with Intel have been finalized. SK Hynix shares were up 2.4% around midday, while Intel shares were up 5.1%.
Apple (AAPL) is developing an artificial intelligence enterprise server with its own chips that could incorporate Nvidia's (NVDA) networking technology, The Information reported Wednesday, citing people familiar with the matter. The planned server line could use Nvidia's NVLink Fusion connective technology to link Apple's M8 Ultra chips, the report said, adding that the product is not expected to be released until 2029. Apple shares were up 0.5%, while Nvidia shares were up 1.9%.
Amazon (AMZN) said Wednesday it's raising the minimum starting pay for US full-time core operations workers to $20 per hour, with average pay hitting nearly $24 per hour. Average total compensation will top $32 per hour when including benefits, and qualified workers and their families will be eligible for lifetime membership with First Tech Federal Credit Union through a program called Day 1 Financial. Amazon shares were down 0.3%.
Microsoft (MSFT) AI Chief Executive Mustafa Suleyman said in an essay that Anthropic's effort to make its Claude model mimic consciousness is a mistake that could make advanced AI more difficult to control, Axios reported Wednesday, citing a copy of the essay it viewed. Microsoft shares were down 0.7%.
J.B. Hunt Transport Services (JBHT) expects earnings from Q2 to Q3 to fall 5% to 10%, Chief Financial Officer Brad Delco said Tuesday on a conference call. The company faced "one of the most acute changes in the cost of purchased transportation," with intra-quarter spot rates rising 30%, Delco said. The company expects driver-related costs to be about $25 million higher in Q3 than in Q2, Delco added. J.B. Hunt shares were down 13%.
Price: $102.06, Change: $+4.92, Percent Change: +5.06%