Tech Sector Leads US Stocks Higher Amid AI Boom
The US stock market saw a slight rebound on Wednesday after three days of losses. The S&P 500 index rose 0.5%, while the Dow Jones Industrial Average increased by 0.6%. The Nasdaq composite also gained 0.5%.
The rally was driven by gains in big tech companies, particularly Dell and Palo Alto Networks. Dell's shares jumped 15.8% after reporting strong second-quarter profits due to accelerating demand for artificial intelligence computing. However, Palo Alto Networks' shares fell 9.3% despite topping Wall Street's expectations with its quarterly results.
The AI boom has been a key driver of the S&P 500's gains this year. Other big tech companies tied to the AI sector also rallied, including chipmaker Nvidia and computer memory seller Micron Technology.