US Stocks-Wall St rebounds on tech revival ahead of Nvidia results, inflation data

Advancing issues outnumbered decliners by a 1.25-to-1 ratio on the NYSE, and by a 1.77-to-1 ratio on the Nasdaq. The S&P 500 posted two new 52-week highs and no new lows, while the Nasdaq Composite recorded 34 new highs and 35 new lows. Most megacaps were trading higher, with Nvidia NVDA.O and Meta META.O gaining 1.4% and 0.9%, respectively. Chipmakers Intel INTC.O and Micron MU.O added 3.1% and 3.9%, respectively. Data-storage company Western Digital WDC.O rose 3.7%. Advanced Micro Devices AMD.O rose 3.4% after Raymond James upgraded the stock. Dick's Sporting Goods DKS.N cratered 22.6% after the retailer slashed its annual forecasts, citing challenging market conditions. Sportswear giant Nike NKE.N also dipped 3.2%. At 09:41 a.m. ET, the Dow Jones Industrial Average .DJI rose 75.49 points, or 0.14%, to 53,492.65, the S&P 500 .SPX gained 29.05 points, or 0.38%, to 7,681.91 and the Nasdaq Composite .IXIC gained 194.45 points, or 0.75%, to 26,174.64. The benchmark S&P 500 and the tech-heavy Nasdaq .IXIC closed lower on Monday after a selloff in semiconductor shares even as markets largely shrugged off the latest U.S. economic threats against Iran. Treasury Secretary Scott Bessent said that countries continuing to trade with Tehran could be forced out of the dollar-based finance system. However, "Bessent framed the economic plan as a means to bring Iran to the negotiating table and for the U.S. to gain an upper hand, (rather) than an escalation," said Mohit Kumar, an economist at Jefferies. Kumar said that Iran was likely to agree to a deal with the U.S. close to the U.S. midterm elections when President Donald Trump would be willing to make the most concessions. Meanwhile, the PCE report on Wednesday could provide greater clarity on price pressures in the economy after an in-line consumer inflation reading earlier this month tempered bets on an interest-rate hike by the U.S. Federal Reserve in September. Still, money market participants are pricing in one 25-basis-point rate increase by the end of the year, according to LSEG data. Against this backdrop, Fed Chair Kevin Warsh's Jackson Hole speech on Friday will be closely watched for clues on how the central bank will approach monetary policy. Wall Street's main indexes rose on Tuesday, as technology stocks recovered from a selloff ahead of AI heavyweight Nvidia's results and an inflation report key to shaping interest rate expectations. The gains could ease investor concerns sparked by a recent bond market rout that has pushed yields higher and pressured equities. They could also help set the tone before September, a historically weaker month for stocks. "The market's going to be more volatile but it's still early in the AI story," said Geoff Strotman, head of Segal Marco Advisors' Alpha Investment Research Group. "There's some concern about valuations but the run that we've had in equities is not unjustified because earnings are strong." The durability of that earnings-driven rally could be put to test again this week after Nvidia's NVDA.O results on Wednesday. Any signs of slowing growth could reignite concerns over stretched valuations and how far the AI-fueled rally can extend. Markets have grown increasingly wary of cyclical spending in the sector and the methods hyperscalers are using to fund their AI buildouts.

US Stocks-Wall St rebounds on tech revival ahead of Nvidia results, inflation data

Market breadth

Megacaps and chipmakers lead gains

Inflation data and Fed clues in focus

Wall Street rebounds as tech stocks recover

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