Wall Street indices opened higher on Wednesday as investors rotated back into beaten-down technology stocks and positioned ahead of key earnings from Micron Technology.
The positive start follows two straight sessions of losses driven by concerns over AI-related spending and interest rates.
The Dow Jones Industrial Average was up 67 points. While the S&P 500 rose 0.44% and the Nasdaq Composite gained 0.6%.
The move comes after the S&P 500 and Nasdaq Composite fell 1.44% and 2.21% in the previous session, extending a tech-led sell-off that wiped out more than $1 trillion in value from the Nasdaq 100 over recent days.
Oil prices also extended declines, with Brent crude falling 3% to around $74 a barrel and West Texas Intermediate slipping 3% to around $71, as geopolitical tensions in the Middle East remained in focus.
Memory chips recover as focus shifts to Micron results
Semiconductor and memory chip stocks led the rebound after sharp losses on Tuesday.
Micron Technology rose about 2.11% in trading, while SanDisk added 2.7%, recovering part of its 13% decline in the prior session.
The Roundhill Memory ETF also moved higher after dropping 14% on Tuesday.
Micron’s earnings, due after the closing bell, are now a key focal point for investors assessing the durability of the AI-driven semiconductor rally.
Micron has been one of the standout performers of the year, rising more than 268% in 2026 despite recent volatility.
Analysts surveyed by FactSet expect earnings of $20.83 per share on revenue of $35.75 billion.
Other chipmakers also rebounded in trading, with Intel and Qualcomm both up more than 1% after steep losses in the previous session.
AI spending concerns and Fed outlook continue to weigh on sentiment
The recent market weakness has been driven by concerns over debt-funded artificial intelligence infrastructure spending and expectations of a more hawkish Federal Reserve.
Traders are increasingly pricing in a potential second rate hike by the Fed by December-end, according to CME Group’s FedWatch tool, as inflation expectations remain elevated.
Investors are also awaiting Thursday’s release of the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, with economists expecting a reading of 4.1%.
Concerns over the AI trade have also broadened beyond chips.
Analysts pointed to pricing pressure and shifting strategies among major technology firms, including changes in approach from Microsoft regarding lower-cost AI models.
Despite recent volatility, JPMorgan raised its year-end S&P 500 target to 7,800 points, citing strong earnings momentum and economic resilience.
Broader markets stabilize as earnings and geopolitics remain in focus
Outside of technology, several notable stocks moved on company-specific developments.
Cerebras Systems fell 11.24% after forecasting lower full-year profit margins in its debut earnings report since going public.
FedEx dropped 0.3% after reporting weaker margins in its core delivery business, while Hertz plunged 23% following a weak outlook and a planned equity offering.
Alphabet gained 1.66% after S&P Global said it would replace Verizon in the Dow Jones Industrial Average, adding to its recent strength.
As investors await Micron’s results, sentiment remains balanced between renewed buying in beaten-down tech stocks and lingering concerns over valuations, monetary policy, and AI-driven capital spending.
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