AI and Chip Stocks Lead Broad Rebound as Yields and Oil Retreat

The major averages finished firmly higher on Thursday, snapping a three-session losing streak as artificial intelligence and mega-cap growth stocks returned to the forefront while easing Treasury yields and crude oil prices provided relief from Wednesday’s post-FOMC selloff. The S&P 500 gained 1.1%, reclaiming both the 7,600 level and its 50-day moving average at 7,614.9. The Nasdaq Composite led with a 1.7% advance, while the Dow Jones Industrial Average rose 0.6%.

Buying interest extended well beyond the largest technology companies, although the broader market lost some ground relative to the major averages as the session progressed. Advancing stocks still outpaced decliners by roughly 2-to-1 at the NYSE and by more than 2-to-1 at the Nasdaq. The Russell 2000 and S&P MidCap 400 each gained 0.6%, solid advances that nevertheless trailed the technology-heavy Nasdaq.

Technology provided the clearest source of leadership. The information technology sector surged 2.2% to finish comfortably atop the sector standings, while the PHLX Semiconductor Index jumped 3.1% as investors returned aggressively to chipmakers.

Intel (INTC 108.80, +7.75, +7.67%) extended Wednesday’s sharp advance following reports that SK hynix (SKHY 182.99, +8.12, +4.64%) is in exploratory discussions with the company regarding potential U.S. chip-production capacity. Advanced Micro Devices (AMD 545.09, +32.59, +6.36%) also posted a sizable gain, while Arm Holdings (ARM 264.90, +20.92, +8.57%) surged after CEO Rene Haas said the company is confident it can secure sufficient supply to meet roughly $2 billion in customer demand.

NVIDIA (NVDA 219.34, +5.44, +2.54%) added to the semiconductor strength after CEO Jensen Huang discussed plans to double chip sales during an event in the UK, providing another catalyst for a semiconductor group that has remained a key source of market leadership despite recent volatility.

Strength was not confined to chipmakers. The iShares GS Software ETF advanced 0.8%, with Oracle (ORCL 150.58, +7.42, +5.18%) and Workday (WDAY 199.28, +11.52, +6.14%) among the group’s notable outperformers.

Mega-cap growth stocks also participated broadly in the rally. All seven Magnificent Seven stocks finished higher, lifting the Vanguard Mega Cap Growth ETF 1.6% and providing substantial support to the market-cap-weighted indexes.

That strength helped consumer discretionary (+1.4%) rank among the session’s leading sectors. Lower Treasury yields also provided support to more rate-sensitive areas of the market, with the iShares U.S. Home Construction ETF gaining 0.5%.

AI infrastructure represented another pronounced pocket of strength. Generac (GNRC 207.20, +32.09, +18.33%) surged more than 18% to rank among the best-performing S&P 500 components after announcing a long-term agreement to supply Amazon (AMZN 251.19, +5.23, +2.13%) with backup generators for its data centers. The agreement also includes a warrant allowing Amazon to acquire up to approximately 1.7 million Generac shares.

Super Micro Computer (SMCI 40.35, +3.50, +9.50%) and Hewlett Packard Enterprise (HPE 61.06, +4.38, +7.73%) also posted outsized gains as investors continued to favor companies positioned to benefit from expanding AI server capacity and data-center infrastructure investment.

Utilities (+0.9%) were another relative outperformer as Treasury yields retreated. The 10-year Treasury yield declined six basis points to 4.95%, reversing a portion of Wednesday’s post-FOMC increase and easing one of the more significant valuation headwinds facing equities in recent sessions.

The decline in yields was particularly welcome following Wednesday’s sharp repricing of the monetary-policy outlook. The Federal Reserve’s 25-basis-point rate increase had initially generated little market reaction, but Chair Kevin Warsh’s emphasis on persistent above-target inflation and the prospect of additional tightening subsequently pushed Treasury yields sharply higher and erased the market’s earlier gains.

Crude oil also moved lower on Thursday, although it recovered substantially from its intraday low. WTI futures settled $0.38 lower, or 0.4%, at $102.03 per barrel after coming under pressure earlier in the session on reports that President Trump is expected to meet with Gulf leaders next week to discuss the next steps in the conflict with Iran. Energy (+0.6%) nevertheless participated in the broader equity-market advance.

Performance was less convincing in several other areas. Communication services (+0.6%) benefited from gains in Alphabet (GOOG 343.68, +4.32, +1.27%) and Meta Platforms (META 682.31, +9.00, +1.34%), although pronounced weakness among several other components limited the sector’s advance.

Financials (-0.1%) were the only S&P 500 sector to finish lower as banking stocks remained under pressure following Wednesday’s rate increase. Consumer staples finished unchanged as investors favored technology, AI infrastructure, and other growth-oriented areas of the market.

Thursday’s rally ultimately reversed a meaningful portion of Wednesday afternoon’s Fed-driven selloff. The decline in Treasury yields and modest retreat in crude oil removed two of the market’s most significant recent headwinds, allowing investors to refocus on semiconductor demand, AI infrastructure spending, and mega-cap growth.

The S&P 500’s move back above both 7,600 and its 50-day moving average provided an additional technical improvement after three consecutive losing sessions. With the 10-year Treasury yield still near 5% and crude remaining above $100 per barrel, however, both interest rates and energy prices remain important variables for the market. For Thursday, easing pressure from both was enough to restore risk appetite and put technology leadership firmly back in control.

Our FTinvest 11 model portfolio edged lower by 0.11% to close at 950.59, remaining relatively stable after the significant volatility experienced earlier this month. The portfolio continues to trade firmly in correction territory, standing approximately 13.3% below its all-time closing high of 1,096.33 and remaining well below the 1,000 level.

FTinvest 11 is now up approximately +2.41% year-to-date, preserving a modest positive return for 2026. Today’s limited movement follows Wednesday’s 0.47% gain and suggests a period of short-term stabilization following September’s sharp selloff. While FTInvest 11 remains substantially below its July record, the portfolio continues to maintain a positive year-to-date return while navigating the current correction with its disciplined, value-driven focus on long-term capital appreciation.