Stocks Rebound as Economic Data Steadies Sentiment After AI Rout – US Market Wrap
US equities gained momentum as concerns around artificial-intelligence disruption eased and a string of economic reports suggested the American economy remains resilient. Bonds declined, Bitcoin slipped toward $66,000, and oil prices surged.
Most stocks in the S&P 500 advanced, with roughly 320 constituents higher. Investors continued searching for signs that last week’s tech-driven selloff may be stabilizing. Chipmakers rose about 1%, while an exchange-traded fund tracking software companies jumped 1.3%.
Market anxiety surrounding AI has shifted rapidly in recent weeks, from doubts about whether heavy investment will translate into profits, to worries that the technology may eventually threaten business models well beyond the tech sector. That sharp change in narrative has fueled volatility and major sector rotations.
Retail participation also accelerated, with individual investors purchasing software shares at record levels, highlighting the intensity of dip-buying after the recent rout.
Equities were further supported by strong economic data. US industrial production posted its largest increase in nearly a year in January, business equipment orders rose more than expected in December, and housing starts reached a five-month high.
Federal Reserve meeting minutes added a more cautious policy backdrop. Officials emphasized that while downside risks to employment have eased, the threat of persistent inflation remains, and some suggested rates could even need to rise if inflation fails to cool.
The S&P 500 climbed to around 6,880. The yield on 10-year Treasuries rose two basis points to 4.08%, while demand was soft at a $16 billion auction of 20-year bonds. The dollar strengthened 0.5%.
Oil rallied as traders weighed whether diplomatic talks between the US and Iran will be enough to avoid conflict, amid reports suggesting military intervention could come sooner than expected. Gold held near $5,000.
