Tech helps Wall Street rebound
US stocks snapped a three-day losing streak on Wednesday as gains by big technology companies and relatively steady oil prices and bond yields helped lift the market after a downbeat start to the week.
The S&P 500 index rose 0.5%. The Dow Jones Industrial Average rose 0.6%, and the Nasdaq composite gained 0.5%
The market has been under pressure this week from rising oil prices and a bond-market sell-off. The rocky start to September follows a mostly positive August during which every major index notched a gain for the month.
While Wall Street remains gripped by anxiety over rising prices, government debt and the impact of global conflicts on the US and the global economy, investors got a breather from the recent volatility in the bond market on Wednesday.
All told, the S&P 500 rose 35.13 points to 7,666.60. The Dow gained 295.07 points to 53,061.95, and the Nasdaq rose 118.05 points to 26,217.83.
AI demand supports tech
Investors welcomed some encouraging signals about demand for artificial intelligence from two big tech companies, Dell and Palo Alto Networks. The AI boom has been the key driver behind the S&P 500’s gains this year.
Dell Technologies jumped 15.8% for the biggest gain among S&P 500 stocks after reporting strong second-quarter profits late on Tuesday. The company cited accelerating demand for artificial intelligence computing and raised its fiscal-year revenue outlook.
Other big tech companies tied to the AI boom rallied. Chipmaker Nvidia, whose big market value tends to give it more influence over the broader market’s direction, rose 3.2%, while computer memory seller Micron Technology gained 2.4%.
Markets in Europe fell after markets in Asia closed lower.
Oil holds near recent highs
Oil prices held relatively steady despite the intensification in the six-month-long US war with Iran. The US attacked sites in Iran over the weekend, ending a lull in major hostilities, and Iran has since retaliated against sites around the Gulf region.
The price of Brent crude, the international standard, rose 1% to settle at $US95.63 per barrel. US oil climbed 0.9% to settle at $US91.01 per barrel.
Energy stocks were mixed. Chevron edged 0.3% higher after confirming it will expand operations in Venezuela.
A surge in oil prices following the start of the US war with Iran fuelled a jump in petrol prices and global shipping costs. The conflict shut down the Strait of Hormuz, through which 20% of the world’s oil is typically shipped.
Higher energy costs worsened inflation that was already stubbornly high amid a volatile US tariff war with much of the world.
Jobs data in focus
Inflation has been squeezing businesses and households at the same time that the mostly resilient jobs market shows signs of weakening. Payrolls processing firm ADP reported that private-sector employment slipped in August, according to its monthly survey. It is just a small snapshot, though, of the broader labour market and follows a government report on Tuesday that showed US job openings rose in July.
The big focus this week will be the government’s broader employment report for August, which will be released on Friday. The previous report for July showed that the jobs market stalled, with employers cutting positions.
Both inflation and the jobs market have been key focuses for Wall Street and the Federal Reserve.
Fed outlook remains complicated
The Fed is trying to balance its task of supporting employment and taming inflation. Wall Street expects the central bank to raise interest rates before the year ends in an effort to cool inflation, which remains well above 3%. The Fed has a stated goal of cooling inflation to a target of 2%.
The bond market has been selling off, which is a signal that it expects borrowing costs to rise.
The yield on the 10-year Treasury, which tends to affect mortgage rates, slipped to 4.78% from 4.79% late on Tuesday. It has been rising steadily throughout the year and was as low as 4.20% at the beginning of 2026.
The yield on the two-year Treasury, which closely tracks expectations for Federal Reserve moves on interest rates, dipped to 4.37% from 4.39%. It is still significantly higher for the year, though, and was as low as 3.50% at the beginning of 2026.
Investors are also betting on a 64% chance that the Fed will raise rates at its upcoming meeting in September, according to CME FedWatch.
The Fed’s position is growing more complicated. Raising the benchmark interest rate would help cool inflation by making borrowing costs higher and slowing the economy. Doing so, though, could also hurt the employment market at a time when it is seemingly already weakening.
