Wall Street rises as tech stocks climb

U.S. stocks snapped a three-day losing streak Wednesday as gains by big technology companies and relatively steady oil prices and bond yields helped lift the market after a downbeat start to the week. The S&P 500 index rose 0.5%. The Dow Jones Industrial Average rose 0.6%, and the Nasdaq composite gained 0.5%. The market has been under pressure this week from rising oil prices and a bond-market sell-off. The rocky start to September follows a mostly positive August during which every major index notched a gain for the month. While Wall Street remains gripped by anxiety over rising prices, government debt and the impact of global conflicts on the U.S. and the global economy, investors got a breather from the recent volatility in the bond market Wednesday. "You've seen a nice spike in (bond) yields over the past week or so, and that's made the market a little bit nervous about how much is too much," said Michael Antonelli, market strategist at Baird. "But today, (there was) no real move in yields that's enough to cause any more consternation." Investors welcomed some encouraging signals about demand for artificial intelligence from two big tech companies, Dell and Palo Alto Networks. The AI boom has been the key driver behind the S&P 500's gains this year. Dell Technologies jumped 15.8% for the biggest gain among S&P 500 stocks after reporting strong second-quarter profits late Tuesday. The company cited accelerating demand for artificial intelligence computing and raised its fiscal year revenue outlook. Palo Alto Networks also reported quarterly results late Tuesday that topped Wall Street's expectations, citing a strong market for AI cybersecurity, though its shares fell 9.3% on Wednesday. Other big tech companies tied to the AI boom rallied. Chipmaker Nvidia, whose big market value tend to give it more influence over the broader market's direction, rose 3.2%, while computer memory seller Micron Technology gained 2.4%. "When rates rise, we tend to worry about what will that do to economic growth, and that puts some caution in the market," Antonelli said. "On the flip side, you get AI spending, a good report from a company like Dell, and the market takes over again and says, 'Oh, we still have this AI spending tail wind.'" Markets in Europe fell after markets in Asia closed lower. Oil prices held relatively steady despite the intensification in the six-month long U.S. war with Iran. The U.S. attacked sites in Iran over the weekend, ending a lull in major hostilities and Iran has since retaliated against sites around the Gulf region. The price of Brent crude, the international standard, rose 1% to settle at $95.63 per barrel. U.S. oil climbed 0.9% to settle at $91.01 per barrel. Energy stocks were mixed. Chevron edged 0.3% higher after confirming it will expand operations in Venezuela. A surge in oil prices following the start of the U.S. war with Iran fueled a jump in gasoline prices and global shipping costs. The conflict shut down the Strait of Hormuz, through which 20% of the world's oil is typically shipped. Higher energy costs worsened inflation that was already stubbornly high amid a volatile U.S. tariff war with much of the world. Inflation has been squeezing businesses and households at the same time that the mostly resilient jobs market shows signs of weakening. Payrolls processing firm ADP reported that private-sector employment slipped in August, according to its monthly survey. It is just a small snapshot, though, of the broader labor market and follows a government report on Tuesday that showed U.S. job openings rose in July. The big focus this week will be the government's broader employment report for August, which will be released Friday. The previous report for July showed that the jobs market stalled, with employers cutting positions. Both inflation and the jobs market have been key focuses for Wall Street and the Federal Reserve. "Friday's employment report, and perhaps even more importantly next week's inflation data, will play a significant role in determining whether policymakers decide to raise rates in September," said Angelo Kourkafas, senior global strategist, investment strategy at Edward Jones, in a research note. The Fed is trying to balance its task of supporting employment and taming inflation. Wall Street expects the central bank to raise interest rates before the year ends in an effort to cool inflation, which remains well above 3%. The Fed has a stated goal of cooling inflation to a target of 2%. The bond market has been selling off, which is a signal that it expects borrowing costs to rise. The yield on the 10-year Treasury, which tends to impact mortgage rates, slipped to 4.78% from 4.79% late Tuesday. It has been rising steadily throughout the year and was as low as 4.20% at the beginning of 2026. The yield on the 2-year Treasury, which closely tracks expectations for Federal Reserve moves on interest rates, dipped to 4.37% from 4.39%. It is still significantly higher for the year, though, and was as low as 3.50% at the beginning of 2026. Investors are also betting on a 64% chance that the Fed will raise rates at its upcoming meeting in September, according to CME FedWatch. The Fed's position is growing more complicated. Raising the benchmark interest rate would help cool inflation by making borrowing costs higher and slowing the economy. Doing so, though, could also hurt the employment market at a time when it is seemingly already weakening. All told, the S&P 500 rose 35.13 points to 7,666.60. The Dow gained 295.07 points to 53,061.95, and the Nasdaq rose 118.05 points to 26,217.83.