FX.co ★ US Stocks Extend Gains

US stock indices extended their rebound on Wednesday, further recovering from the prior week’s losses as investors reassessed the effect of AI-driven disruption on the technology sector. The Nasdaq 100 rose 1.2%, the S&P 500 advanced 0.8%, and the Dow Jones Industrial Average added about 250 points.

Recent volatility in large-cap tech names had been fueled by doubts over whether the surge in AI-related infrastructure spending would translate into meaningful revenue growth. Nvidia climbed nearly 3%, building on the previous session’s gains after Meta said it would deploy millions of Nvidia chips in its new data center. Amazon and Micron also advanced, gaining roughly 2.5% and 7%, respectively, following disclosures that major asset managers had increased their holdings in the two companies.

By contrast, AMD edged lower, and Palo Alto Networks slumped as much as 10% after issuing earnings guidance that fell short of market expectations. Broader sentiment was further supported by expectations that the Federal Reserve will deliver interest rate cuts later this year, ahead of the release of the latest FOMC meeting minutes due out today.