Highlights
Major stock averages rebounded Thursday as traders bought the dip after Wednesday’s big drop, especially in the AI momentum trade and other big technology shares. The Dow Jones industrial average gained 1.2 percent to make up some of Thursday’s 2.2 percent drop while the S&P 500 gained 1.6 percent after falling 1.5 percent Wednesday, and the Nasdaq was up 2.8 percent versus Wednesday’s minus 1.7 percent.
Bond yields declined in shorter maturities and rose in the longer end as many investors viewed Federal Reserve Chair Kevin Warsh’s comments on Wednesday as dovish, and they scaled back prospects for near-term rate increases. Economic indicators including GDP and personal consumption expenditures prices came in on the low side too. Oil prices edged down after Wednesday’s rally while the dollar declined.
Among stocks, upbeat results from Microsoft reassured investors that the AI trade could resume.