NEW YORK (AP) — U.S. stock indexes are on the rise today after a disappointing four-day stretch. The market is bouncing back from a recent decline that knocked it off its all-time high.
As of midday trading, the S&P 500 is up by 0.9%, showing signs of recovery not seen in nearly two weeks. The Nasdaq composite, which suffered the biggest losses yesterday, is up 1.3%. Meanwhile, the Dow Jones Industrial Average has gained 162 points, or 0.4%.
Wall Street had been facing some pressure due to unexpected economic reports. Some data suggested U.S. households are feeling increasingly worried about inflation and tariffs implemented under President Trump. High-growth stocks, especially in the tech sector, were hit hard during this downturn.
For instance, Super Micro Computer, a company riding the wave of artificial intelligence excitement, saw its stock drop nearly 25% over four days. However, it rebounded today, soaring by 19.7% after filing its annual report for the fiscal year ending in June.
This filing had been delayed due to concerns raised by its former accounting firm regarding financial reporting and governance. Super Micro needed extra time from Nasdaq to complete its filings while it changed auditors.
General Motors also made headlines, boosting its stock by 5.4% after announcing a $6 billion stock buyback program. The company plans to increase its dividend, putting more cash in the pockets of shareholders.
Nvidia, a leading chipmaker known for its role in the AI boom, gained 4.7%. The company’s latest profit report is expected later today. This will be the first earnings report since a Chinese competitor, DeepSeek, stirred the AI sector by introducing a large language model that challenges established players without the need for high-cost chips. This innovation has raised questions about future spending on Nvidia’s products and the broader AI landscape.
On a positive note, some major tech companies have committed to investing billions into AI, which bodes well for the industry.
NRG Energy’s stock jumped by 11.5% following its announcement of a partnership with GE Vernova and a Kiewit subsidiary aimed at generating more electricity for AI data centers. GE Vernova also enjoyed a rise of 7.3% after this news.
NRG’s quarterly results surpassed analyst expectations, similar to many S&P 500 companies, which have been reporting stronger profits than anticipated.
In retail, TJX, the parent company of TJ Maxx and Marshalls, rose by 3.6%. They announced a 13% increase in dividends and a buyback program worth $2.5 billion, contributing to its stock’s upward trend.
Despite concerns about consumer spending due to high inflation, TJX’s CEO, Ernie Herrman, expressed optimism about growth opportunities, crediting the company’s off-price model.
On the bond market front, Treasury yields remained steady after a recent decline amidst worries about the economy. The 10-year Treasury yield slightly decreased to 4.29% from 4.30% the previous day, down from nearly 4.80% last month.
Looking ahead, the U.S. Commerce Department will release its final estimate of the economy’s performance from the last quarter of 2024 on Thursday. Overall, the economy seems to be holding up well, but uncertainty remains.
If upcoming reports indicate a stagnant economy coupled with rising inflation, it could spell trouble for the Federal Reserve, which might find it challenging to respond effectively. Mark Hackett, a chief market strategist at Nationwide, highlighted stagflation as the main concern looming over the markets right now.
Internationally, stock markets showed positive trends. Europe’s and Asia’s indexes generally rose, with France’s CAC 40 gaining 1.2% and Hong Kong’s Hang Seng climbing 3.3%. However, Tokyo’s Nikkei 225 index fell slightly by 0.2%, influenced by trading company stocks linked to Berkshire Hathaway’s investment strategies.
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