Investors in the United States enjoyed a welcome reprieve on Wednesday, snapping a three‑day losing streak as major technology stocks surged and energy and bond markets showed relative calm. The S&P 500 rose 0.5%, the Dow Jones Industrial Average climbed 0.6%, and the Nasdaq Composite added 0.5%.
Tech earnings and AI demand drive the rally
Market strategist Michael Antonelli of Baird noted that the recent spike in Treasury yields had made traders nervous, but the lack of a further move in yields helped steady sentiment. “When rates rise, we tend to worry about what will that do to economic growth, and that puts some caution in the market,” he said. “On the flip side, you get AI spending, a good report from a company like Dell, and the market takes over again and says, ‘Oh, we still have this AI spending tail wind.’”
Artificial intelligence continued to be the engine behind the market’s performance this year. Dell Technologies posted a 15.8% jump after reporting strong second‑quarter earnings and highlighting accelerating demand for AI‑focused computing, prompting the company to raise its fiscal‑year revenue outlook. Palo Alto Networks also beat Wall Street expectations with robust AI‑related cybersecurity sales, though its shares fell 9.3% on Wednesday.
Other AI‑linked giants added to the optimism. Chipmaker Nvidia rose 3.2% and memory‑chip maker Micron Technology gained 2.4%, reflecting continued investor confidence in the sector’s growth prospects.
Oil prices hold steady despite renewed conflict
Energy markets were relatively stable even as the United States resumed limited strikes against Iranian targets, ending a brief lull in hostilities. Brent crude settled at $95.63 per barrel, up 1%, while U.S. crude finished at $91.01 per barrel, a 0.9% increase.
Chevron edged higher by 0.3% after confirming plans to expand operations in Venezuela. The conflict in the Gulf has raised concerns about shipping costs, as the Strait of Hormuz—through which roughly 20% of the world’s oil passes—has faced intermittent closures.
Bond market and inflation outlook
Bond yields showed only modest movement. The 10‑year Treasury yield slipped to 4.78% from 4.79% on Tuesday, while the 2‑year yield fell to 4.37% from 4.39%. Both rates remain well above the levels seen at the start of 2026, underscoring market expectations of higher borrowing costs ahead.
Investors are betting a 64% chance that the Federal Reserve will raise rates at its September meeting, according to CME FedWatch. The central bank faces a delicate balance: raising rates could help cool inflation, which remains above the 3% target, but higher borrowing costs risk further weakening an already softening jobs market.
Jobs data on the horizon
Attention will turn to the government’s employment report for August, due Friday, after a private‑sector survey from ADP showed a slight dip in private‑sector employment for August. The report follows a Treasury release indicating that job openings rose in July, suggesting mixed signals for the labor market.
Analysts, including Angelo Kourkafas of Edward Jones, warned that the upcoming jobs and inflation data will heavily influence policymakers’ decisions on whether to raise rates before year‑end.
Overall, the S&P 500 closed up 35.13 points at 7,666.60, the Dow added 295.07 points to finish at 53,061.95, and the Nasdaq rose 118.05 points to 26,217.83, marking a modest but encouraging bounce for Wall Street.
Original reporting: KTBS 3 (Shreveport) — read the source article.
