The S&P 500 and Nasdaq Composite both moved higher in early trade, rising around 0.5%, after steep declines on Tuesday led by weakness in AI-linked semiconductor names. The Dow Jones Industrial Average traded slightly higher, gaining about 0.3%, as broader sentiment stabilised.
The rebound was led by chip-related stocks, which had been heavily sold off in the prior session.
Shares of Micron Technology rose around 2% in premarket trade, while Sandisk gained nearly 3%, recovering part of Tuesday’s losses.
The semiconductor sector had come under pressure on Tuesday, with the VanEck Semiconductor ETF dropping about 7%, as investors booked profits in high-flying AI-related stocks amid concerns over stretched valuations and shifting demand signals.
“Arguments around technical positioning exhaustion may be true, but there might be some fundamental risk emerging as well,” said Dan Skelly, head of market research and strategy at Morgan Stanley Wealth Management, pointing to pricing competition in AI models and signs of easing infrastructure demand, stated CNBC.
He also highlighted evolving strategies among major technology players, noting a shift toward lower-cost AI models and changing investment priorities.
In corporate news, Alphabet shares rose nearly 1% after S&P Global said it will replace Verizon with Alphabet in the Dow Jones Industrial Average.
Silver futures for July delivery (SI=F) opened sharply lower on the day at $61.30, marking a roughly 6% decline from the previous session’s opening level, as selling pressure extended into the morning trade.
The metal continued to weaken after the open, slipping further to around $59.32 by 8:18 am ET, briefly breaking below the $60 threshold. The decline pushed silver to its weakest opening level of the week and its first move below $60 at the open in several sessions, with the last sub-$60 opening seen on December 9, 2025, when prices began the day at $57.62.
In commodities, oil prices continued to slide, with Brent crude falling more than 4% to around $74 per barrel and West Texas Intermediate also down roughly 4% near $70, marking their lowest levels in months.
The moves come after a volatile session that saw renewed pressure on tech stocks, with markets now awaiting fresh earnings cues from Micron to gauge the durability of AI-driven demand.
