The US stock market rebounded from opening losses in Tuesday’s trade as a series of upbeat earnings reports and a retreat in crude oil prices overshadowed recent pressure on artificial intelligence (AI)-related stocks.
The blue-chip Dow Jones Industrial Average rebounded 1.5% from the day’s low, while the S&P 500 recovered 1%. The Nasdaq Composite climbed 1.6% from the day’s low. Among individual stocks, 3M rallied 4% after the industrial and safety products maker reported results that exceeded Wall Street estimates.
The market has been under pressure recently amid concerns about the sustainability of the AI trade, as worries over debt and demand have grown. Adding to these concerns, data centre infrastructure company Elice Inc. plunged as much as 33% during its trading debut in Seoul.
However, AI-related stocks staged a modest recovery as the session progressed. Micron Technology, Intel and SanDisk each rose around 2%, while Seagate Technology gained 2% and Advanced Micro Devices (AMD) advanced more than 1%. The VanEck Semiconductor ETF (SMH) added nearly 1%, while CoreWeave gained more than 3%.
Chip stocks have fluctuated between gains and losses in recent sessions but have largely trended lower amid intensifying Chinese competition, tight NAND supply, expectations of higher interest rates and concerns about the sustainability of AI infrastructure spending.