Estée Lauder shares climbed more than 16% on Wednesday as the beauty company showed progress in its ongoing turnaround. The stock was among the standout movers in a mixed session for markets.

The Estée Lauder Companies Inc. (EL) also appeared among the day’s notable gainers, while Analog Devices rose just under 1%.

Earnings Season Wraps Up Strong

Second-quarter earnings for S&P 500 companies are on pace to rise 50% year over year. According to FactSet data, that would be the highest growth rate since 2021.

Bank of America strategists said artificial intelligence is the main driver of that broad growth. AI spending has lifted results across multiple sectors this earnings season, helping make this reporting period one of the strongest in several years even as investors remain selective about where they add exposure.

Retail results have also been in focus this week. Home Depot and Lowe’s both reported that consumers kept spending, though mostly on smaller projects. Inflation and geopolitical concerns continue to weigh on household budgets.

Target posted another earnings beat, extending the retail sector’s momentum. Walmart is scheduled to report on Thursday, which will provide another test of the strength of the US consumer and close out a week that has kept spending trends in the spotlight.

Chip Stocks Weigh on the Nasdaq

The Nasdaq Composite opened higher but gave back those gains by midday, falling 0.2% after starting the session in positive territory.

Chip stocks were the main drag. The iShares Semiconductor ETF dropped 2.9% after an early pop. Traders appear reluctant to chase semiconductor gains and have been taking profits quickly when prices rise.

The S&P 500 held up better, rising 0.59% to 7,737. The Dow Jones Industrial Average added about 293 points, or 0.55%.

The Treasury Department announced plans to double the size of its long-dated debt buyback operations. The move lifted bond markets. The iShares 20+ Year Treasury Bond ETF rose 1.6% to $82.95, putting it on pace for its best single day since October 10, 2025.

Despite weakness in chip stocks, most S&P 500 stocks were higher on the day. The broader advance was helped by the Treasury buyback news.

Estée Lauder’s move was one of the largest individual stock gains of the session. The company has been working through a restructuring plan after a difficult stretch, and the size of the advance put it among the more closely watched consumer names on a day when earnings reactions were spread across sectors.

Heading into the final stretch of earnings season, the broader picture remains one of steady gains. Most companies have beaten expectations, with AI still the dominant theme.

Walmart’s results on Thursday will close out a busy week for retail earnings and offer a fresh read on consumer spending trends.