NEW YORK — U.S. stock indexes are experiencing a rebound on Wednesday after a four-day downturn that impacted Wall Street’s previously soaring performance.
The S&P 500 gained 0.8% in morning trading, while the Nasdaq composite, which faced the largest decline on Tuesday, surged 1.2%. The Dow Jones Industrial Average also saw an increase of 188 points, or 0.4%, by 10:20 a.m. Eastern Time.
Recent struggles in the stock market can be attributed to a series of weaker-than-expected economic reports, indicating rising pessimism among U.S. households regarding inflation and tariffs imposed by the government. High-growth stocks, especially in the tech sector, faced significant declines during this period.
For instance, Super Micro Computer, a notable player in artificial intelligence technology, saw its shares drop nearly 25% over a four-day span. However, the stock bounced back with a 23% increase on Wednesday following the filing of its annual report for the fiscal year ending in June.
The company, which specializes in servers used for AI and computing, had delayed its financial report amid concerns raised by its former accounting firm regarding its financial reporting and governance. After obtaining extensions from Nasdaq, Super Micro was able to complete its filing with a new public accounting firm.
General Motors also made headlines, seeing a 6.9% rise after announcing a stock buyback program up to $6 billion and an increase in its dividend payments to shareholders.
Market attention remained focused on Nvidia, the semiconductor giant and key player in the AI space, which rose 3.4% ahead of its upcoming profit report. This will be the company’s first earnings announcement since a new competitor in China, DeepSeek, claimed it has developed a competitive large language model without relying on expensive chips. This revelation has raised questions regarding Nvidia’s future market position and investments.
Some major tech companies have expressed their commitment to continuing significant investments in AI, sending a positive signal to the industry.
In another notable move, NRG Energy’s stock surged by 10.3% after announcing a partnership with GE Vernova and a subsidiary of Kiewit to boost electricity generation for AI data centers. GE Vernova also experienced a rise of 6.5% following this announcement.
NRG reported quarterly results that exceeded analysts’ expectations, aligning with trends in other S&P 500 companies, which have reported higher profits than anticipated for the end of 2024.
Off-price retailer TJX Companies rose 1.5% after announcing a 13% increase in dividends and a $2.5 billion stock buyback program, aiming to strengthen its financial position amid consumer spending concerns linked to inflation and economic uncertainties. TJX’s CEO expressed confidence in the company’s growth potential thanks to its off-price retail model.
In the bond market, Treasury yields remained stable after previous volatility. The yield on the 10-year Treasury edged up to 4.31% from 4.30% late Tuesday, reflecting market adjustments.
On Thursday, the U.S. Commerce Department is set to release its final estimate on the economic performance for the fourth quarter of 2024, which appears to show strong growth prospects.
International markets also experienced gains, with indexes rising across Europe and Asia. France’s CAC 40 climbed 1.1%, and Hong Kong’s Hang Seng jumped 3.3%, while Japan’s Nikkei 225 index dipped 0.2% amidst mixed market reactions.
