The S&P 500 index rebounded and closed higher on Thursday after sharp fluctuations, with buying at lower levels pushing the index to end a three-day decline. Previously, concerns about AI trading and stubborn inflation continued to put pressure on the market.
The S&P 500 index closed up 0.3%, after having fallen 0.6% at the beginning of the session.
8 out of 11 major industry sectors saw gains, with the healthcare sector leading the rise.
The Nasdaq 100 index narrowed its decline significantly, closing down 0.1%.
Major stock indices came under pressure in the morning session as data showed that U.S. producer prices rose at the fastest pace in over four years in September, reinforcing the Federal Reserve's rationale for continuing to raise interest rates in the coming months.
As the stocks and bonds of CoreWeave, a computing power provider known as AI, were sold off, causing investors to lose confidence in AI's transactions, NVIDIA CEO Jensen Huang defended the company's financial situation.
LPL Financial Chief Stock Strategist Jeff Buchbinder said: "During this four-year bull market, investors who bought at low points have consistently reaped rewards, and it seems they are doing so again today."
As traders shifted from tech stocks to other sectors, value stocks helped drive the rise of the S&P 500 index.
The S&P 500, which serves as a measure of market breadth, rose by 1.4%, marking the largest increase since early August.
Frank Funds, President and Portfolio Manager, stated: "Amid the AI boom, tech stocks have become quite expensive, while value stocks have become too cheap."
Chip stocks, which have experienced sharp fluctuations this week, continued to show volatility. The Philadelphia Semiconductor Index fell for the seventh consecutive trading day.
As of the close, the S&P 500 index rose by 0.3% to 7,744.06 points.
The Dow Jones Industrial Average rose 1.1% to 5,2177.69 points.
The Nasdaq Composite Index rose 0.1% to 2,6713.03 points.
The Nasdaq 100 index fell 0.1% to 2,9935.6 points.
The Russell 2000 Index rose by 1.4% to 2,767.269 points.
