Andrew Harnik / Getty Images Fed Chair Jerome Powell addresses the media after the US central bank's decision to keep interest rates unchanged today.

Key Takeaways

The S&P 500 rose 0.4% on Wednesday, May 7, 2025, as investors reviewed the details of today’s Federal Reserve meeting and parsed comments by President Donald Trump on trade with China. Charles River Laboratories shares surged as the medical device testing company announced board changes and began a strategic review of its operations. Google parent Alphabet sunk on worries that AI-powered search could undercut demand for its search engine.

The S&P 500 broke a two-session losing streak, rising Wednesday as stocks gained ground in volatile trading following the Federal Reserve’s decision to keep interest rates unchanged.

Investors also reviewed post-decision comments by Fed Chair Jerome Powell, who alluded to the potential risks of a tariff-heavy trade policy, and President Donald Trump, who said he wasn’t willing to lower the 145% tariffs on China in order to encourage that nation to enter into trade discussions. Representatives of China and the U.S. are set to discuss trade in the coming days.

The S&P 500 gained 0.4%, while the Dow Jones Industrial Average added 0.7% and the Nasdaq finished 0.3% higher. Recap Investopedia's full coverage of today's trading here.

Charles River Laboratories (CRL) was the best-performing stock in the S&P 500, rising some 19% after the medical testing company announced changes to its board membership and began a strategic review of its operations amid pressure for changes from activist investor Elliott Investment Management.

Shares of The Walt Disney Co. (DIS) surged nearly 11% after its quarterly results came in ahead of analyst estimates and it lifted its full-year profit outlook. The company also highlighted growth in Disney+ subscribers, coming after it projected that its subscriber base would suffer a “modest decline” during the quarter. The media giant also announced plans for a new theme park.

Google parent Alphabet (GOOG, GOOGL) was the worst performer in the S&P 500, both classes of shares falling more than 7% on worries over the direction of its search products. An Apple (AAPL) executive reportedly said the iPhone maker is looking to add AI-powered search options to its Safari browser, suggesting that it could eventually replace search engines like Google's. The executive made the comments during testimony for the Justice Department's lawsuit against Alphabet, revealing that searches on Apple's Safari fell last month for the first time, and said that the company has had discussions with Perplexity AI as it looks to add AI search options to its browser.

Story Continues

International Flavors & Fragrances (IFF) fell 7% after the company reported a decline in year-over-year net sales. DoorDash (DASH) fell for the second straight session after its first-quarter revenue missed analyst estimates.

Dayforce (DAY) shares dropped by more than 6% after the software company’s quarterly profits and forward-looking projections came in lower than analyst estimates, even as its first-quarter revenue came in better than expected. The human resource software maker reported a 5% increase in its customer base that was below analyst estimates.

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