U.S. stock and index markets rose on Wednesday, buoyed by Alphabet’s gains after the tech giant reported better-than-expected earnings, setting a positive tone for upcoming tech sector earnings.

On Tuesday, Wall Street indexes closed with mixed results as investors flocked to tech stocks, while most other sectors lagged. The Nasdaq Composite Index rose by 0.8%, reaching a record high, and the S&P 500 gained 0.2%, while the Dow Jones Industrial Average dropped by 0.4%..

Alphabet Surges on Strong Earnings

Alphabet (GOOGL) shares rose nearly 6% pre-market, reaching a three-month high after the company’s stronger-than-expected earnings for the September quarter highlighted successful investments in artificial intelligence. Its cloud business, heavily linked to AI, grew at its fastest pace in eight quarters, while election-related ad spending boosted revenue, particularly on YouTube.

Alphabet’s earnings set a strong precedent for tech sector earnings in the coming days. Meta Platforms (META) and Microsoft (MSFT) are set to report results after Wednesday’s close, followed by Amazon (AMZN) and Apple (AAPL) on Thursday. Conversely, AMD (AMD) dropped nearly 8% after issuing a weaker-than-expected forecast for the current quarter.

Economic Data Flood

Wednesday brings a range of economic data. Third-quarter GDP data will be released later, expected to confirm strong growth in the U.S. economy. Equivalent Eurozone data, released early Wednesday, surprised with a quarterly growth rate of 0.4%, above the forecasted 0.2%.

Private-sector employment data from ADP, which serves as a precursor to Friday’s nonfarm payrolls, will also be released later, with Thursday bringing the PCE price index, the Federal Reserve’s preferred inflation indicator. These figures may influence interest rate expectations ahead of next week’s Fed meeting, where a 25 basis point rate cut is anticipated.

With the U.S. presidential election on November 5, market volatility is expected to increase. Recent polls show Donald Trump gaining ground on Kamala Harris, intensifying the race.

Crude Oil Rebounds on API Inventory Data

Oil prices rose on Wednesday, recovering some recent losses after industry data showed an unexpected decline in U.S. inventories. Data from the American Petroleum Institute indicated a drop in U.S. crude stocks by 0.57 million barrels over the last week, countering expectations of a 2.3 million barrel build-up. Official inventory data due later Wednesday could signal a tighter supply in the world’s largest fuel consumer if it aligns with API figures.