Following a tech-driven decline, stock traders seize the dip – US Market Wrap (6th October)

At a time when every stock loss is viewed as an opportunity, buyers emerged following a small pullback led by some of the biggest winners of the AI boom. Bitcoin surged.

While Wall Street did not experience a buying frenzy, equities were able to recover following a slump that highlighted concerns about how stretched the market has become and how susceptible it is to negative news. Chipmakers, which had borne the brunt of the previous selling, rallied on Wednesday.

Bonds fell as data revealed that US services activity grew at the quickest rate in eight months. Fed’s Miran said a survey showing an increase in employment at businesses was “a welcome surprise,” but that interest rates should be lower.

Treasury officials, unveiling their plans for financing the US government deficit over the November-to-January period, said they’d begun “to preliminarily consider future increases,” even as they continue to anticipate no changes to note and bond auction sizes “for at least the next several quarters.”

More than 300 shares in file S&P 500 rose, with the gauge closing just shy of 6,800. A gauge of semiconductors jumped 3%. The Russell 2000 of small firms added 1.5%. In late hours, Qualcomm gave a bullish forecast, though a tax change took a toll on profit last quarter.

The yield on 10-year Treasuries climbed seven basis points to 4.16%. Bitcoin gained 3.5%. The dollar wavered.