1 hr ago
Wall Street Rebounds as Investors Reassess Risky Stocks
U.S. stocks went up on Wednesday after falling for three days in a row.
Investors bought shares that had recently become cheaper.
The Dow, S&P 500 and Nasdaq all gained less than 1%.
Companies connected to artificial intelligence, including Nvidia, also rose.
Dell’s stock jumped after the company improved its forecasts for the year.
Brown-Forman gained after reporting better-than-expected profit.
However, investors were still worried about rising bond yields, inflation and government debt.
Fighting involving the United States and Iran added to concerns about higher energy prices.
Some weaker jobs and business-spending data also suggested that the economy could be slowing.
The Dow, S&P 500 and Nasdaq rose 0.51%, 0.49% and 0.38%, respectively, on Wednesday.
Investors sought bargains after a three-day losing streak, while tensions involving Iran and a global bond selloff limited gains.
Nvidia rose 3.4%, and semiconductor stocks recovered ahead of Broadcom’s quarterly results.
Dell jumped 10.8% after raising its annual revenue and profit forecasts, while Brown-Forman gained 4.5% after beating profit estimates.
Weaker-than-expected private-sector hiring and revised capital-goods orders suggested possible softening in U.S. business spending.
- Who
- U.S. stock investors, companies including Dell, Brown-Forman and Nvidia, and market participants monitoring economic and geopolitical developments.
- What
- Wall Street stocks partially rebounded after a three-day decline, despite continued concerns about bond markets, inflation and tensions involving Iran.
- Where
- U.S. financial markets, including the New York Stock Exchange and Nasdaq.
- When
- Wednesday, September 2; the article does not specify the year.
- Why
- Investors looked for bargains among recently weakened stocks, while company earnings and forecasts supported selected shares.
Reasons for the Rebound
Risks Limiting Gains
Investor strategy
Reasons for the Rebound
Investors looked for bargains in stocks and sectors that may have been oversold during recent risk-off trading.
Risks Limiting Gains
The continuing bond selloff and geopolitical tensions kept investors cautious.
Artificial-intelligence stocks
Reasons for the Rebound
Nvidia and other semiconductor shares rose, and one investor said the AI trade remained strong.
Risks Limiting Gains
Software and services stocks underperformed as investors considered the possibility of AI disruption.
Economic outlook
Reasons for the Rebound
Strong company-specific news, including Dell’s improved forecast and Brown-Forman’s profit beat, supported selected shares.
Risks Limiting Gains
Fewer-than-expected private-sector job additions and downwardly revised core capital-goods orders pointed to potentially weaker business spending.
Key facts
- Dow Jones Industrial Average
- Rose 270.05 points, or 0.51%, to 53,036.93.
- S&P 500
- Rose 37.10 points, or 0.49%, to 7,668.57.
- Nasdaq Composite
- Rose 100.11 points, or 0.38%, to 26,199.89.
- Top company mover
- Dell advanced 10.8% after raising its annual profit and revenue forecasts.
- Economic data
- ADP reported fewer-than-expected private-sector job additions in August.
- Market pressure
- A continuing global bond selloff reflected concerns about inflation and growing government debt.
- Geopolitical concern
- The article said the United States and Iran increased airstrikes, raising concerns about prolonged conflict and energy prices.
Quotes
Michael Monaghan
Portfolio manager at Founder ETFs in Dallas
“Everyone is looking for reasons why AI (stocks are) not going to go higher and people are poking around and looking for other places to put their money. But ultimately, the signals are that the AI trade is very strong.”
livemint.com
“Yesterday, everyone was concerned about bond yield and (the Iran war in) the Middle East, it was weighing on the market. Today, people aren't focused on it.”
livemint.com
Sources
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