US stocks advanced on Wednesday, led by a rebound in technology shares after a turbulent start to the week.
The S&P 500 rose 0.2%, the Nasdaq Composite gained 0.3%, and the Dow Jones Industrial Average climbed 185 points, or 0.4%, to notch a fresh record high.
The session marked a modest recovery for the AI and semiconductor sectors, which have been at the centre of recent volatility as investors weigh strong demand against concerns about stretched valuations.
AMD jumps on $1 trillion AI market forecast
Advanced Micro Devices (AMD) surged more than 6% after CEO Lisa Su projected that the total market for artificial intelligence data center parts and systems will reach $1 trillion by 2030.
Su said the company expects overall revenue growth to accelerate amid what she called “insatiable” demand for AI computing power.
The upbeat outlook helped reverse some of Tuesday’s declines, when AMD and other AI-linked names were among the biggest drags on the broader market.
Shares of Nvidia also rose 0.7% on Wednesday after supplier Foxconn reported a 17% year-over-year earnings increase, further boosting sentiment around semiconductor supply chains.
Tuesday’s pullback had seen Nvidia fall nearly 3% and AMD more than 2%, reflecting investor unease about whether tech valuations could sustain their steep year-to-date gains.
Other factors helping the market comeback
The rebound in tech followed a session where defensive and consumer names had led gains.
On Tuesday, the Dow rallied more than 550 points, helped by strength in Walmart, Home Depot, and McDonald’s, while the Nasdaq slipped as traders rotated into sectors with lower valuations.
The S&P 500 has now logged three consecutive positive sessions, aided by a rally in healthcare stocks such as Eli Lilly and Johnson & Johnson, which were among Tuesday’s top performers.
Investors also continued to monitor developments in Washington, where a potential resolution to the US government shutdown appeared within reach.
The Senate passed a spending bill on Monday evening that now awaits a House vote.
Wells Fargo lifts S&P 500 target
In a note released this week, Wells Fargo raised its year-end target for the S&P 500 to 7,100, citing strong retail participation, improving liquidity conditions, and optimism about corporate earnings growth.
The firm said that if profits expand at least 10% annually between 2025 and 2027, the index could return about 8% per year through 2030, reaching roughly 9,500 by the end of the decade.
Analysts highlighted the possibility of a “risk-on rally” into year-end, driven by expectations of a December rate cut by the Federal Reserve and continued capital expenditure from major tech players such as Meta and Alphabet.
The S&P 500 has not yet closed above the 7,000 mark. Its record close of 6,890.89, set on October 29, remains the current all-time high.
Wells Fargo’s new target implies nearly 5% upside from present levels.
The post US equities stage a rebound at open, led by AMD stock: Nasdaq up 0.3% appeared first on Invezz
