Wall Street recovers some of the week’s losses after AI stocks swing back upward

The U.S. stock market recovered some of its weekly losses on Thursday, driven by a rebound in artificial-intelligence stocks. The S&P 500 rose 0.3%, the Dow Jones Industrial Average climbed 313 points (0.6%), and the Nasdaq composite increased 0.5% by 11:45 a.m. Eastern time. AI-related stocks led the recovery after volatile swings, with Marvell Technology up 2.6% following a chaotic week that included a 32.5% surge after Nvidia CEO Jensen Huang called it a potential “next trillion-dollar company.” Semiconductor companies saw strong gains, with Lam Research rising 8.2% and KLA climbing 8.4%. Meanwhile, Oracle’s stock dropped 11.6% after reporting stronger-than-expected quarterly profits but announcing plans to raise $40 billion in cash for AI investments, fueling concerns about overvaluation in the sector. Oil prices remained stable despite escalating tensions in the Iran war, which disrupted Persian Gulf oil deliveries. Brent crude rose 0.3% to $93.30 per barrel, while U.S. benchmark crude increased 1% to $90.96. Rising oil prices contributed to higher U.S. wholesale inflation in May, prompting the European Central Bank to raise interest rates for the first time, a move that could slow global economic growth. The Federal Reserve is expected to keep interest rates steady next week under new Chair Kevin Warsh, though traders anticipate at least one rate hike by year-end due to persistent inflation and a strong U.S. job market. The 10-year Treasury yield slightly eased to 4.52%, reflecting cautious investor sentiment amid economic uncertainty.