A rebound in U.S. tech giants spurred a market recovery, with an optimistic outlook from a bellwether artificial intelligence company reigniting hopes that this key bull-market driver could continue to exert its influence.
By the time of writing, the S&P 500 index had climbed 0.6%, the Nasdaq 100 index advanced 1.1%, and the Dow Jones Industrial Average rose 0.4%. The Russell 2000 small-cap index gained 0.4%. The yield on the 2-year U.S. Treasury note increased by 3 basis points to 3.54%. A key measure of the U.S. dollar was up 0.2%.
Buyers returned to closely watched AI stocks, following a rotation of funds out of the sector that had caused it to lag behind segments more sensitive to the economy. This shift was preceded by Asia's most valuable company, TSMC, alleviating concerns about the sustainability of current data center spending. NVIDIA led the gains among major tech stocks, while ASML hit a record high in European trading.
Trader sentiment also received a boost from U.S. labor market data, which showed initial jobless claims unexpectedly fell to their lowest level since November. Manufacturing activity in New York State expanded, while a prices received index dropped to a near one-year low. These reports triggered a climb in short-term U.S. Treasury yields alongside a stronger dollar.
Oil prices declined after former U.S. President Donald Trump earlier hinted at a potential pause in military action against Iran. Silver retreated from a record high as investors took profits after a powerful rally, and the U.S. refrained from imposing import tariffs on critical minerals.
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