Stocks climbed after a recent rout driven by worries about the unprecedented spending on artificial intelligence, as traders prepared for Micron Technology Inc.'s earnings report. Around 350 shares in the S&P 500 rose, with chipmakers stabilizing. Micron's results are anticipated to provide the clearest indication yet of whether demand for AI infrastructure is strong enough to maintain this year's market surge. The "meme-stock" crowd also rallied behind Wendy's Co., whose shares soared.
Contributing to the improved sentiment was a slide in energy prices, which helped alleviate concerns about inflationary pressures ahead of a key Federal Reserve report. Brent oil fell below $75, while West Texas Intermediate crude dropped 3.6% to $70.61 a barrel. Treasury yields also decreased, and gold remained near $4,000. Spot gold specifically fell 2.5% to $4,014.71 an ounce.
Wall Street's rebound followed a drop fueled by concerns over elevated valuations after a nearly three-month equity rally. JPMorgan Chase & Co. strategists, led by Dubravko Lakos-Bujas, predicted a "blue sky" scenario for US stocks, citing solid earnings and a potential peace deal to end the Iran war. They raised their year-end target for the S&P 500 to 7,800, with the index hovering near 7,400. Geopolitical tensions easing also contributed to lower oil prices, reducing expectations for future interest rate increases, which had peaked after the previous week's Fed meeting.
Some key market movements included the S&P 500 rising 0.6% by 12:30 p.m. New York time, the Nasdaq 100 gaining 0.3%, the Dow Jones Industrial Average increasing 0.9%, and the MSCI World Index rising 0.4%. Micron, which reports results after the closing bell, has soared almost 300% in 2026, driven by a surge of cash from technology giants racing to expand data-center capacity. However, concerns are growing about the sustainability of this growth.
