US Stock Market: What to led to S&P 500, Nasdaq, Dow Jones, Russell 2000 rebound after historic low despite fall of Nvidia stocks, TSMC shares?

US stock market indexes on Thursday rebounded after suffering one of the worst days of trading at the Wall Street. S&P 500 rose 25.12 points, or 0.3 per cent, to 7,744.06, Dow Jones Industrial Average rose 556.21 points, or 1.1 per cent, to 52,177.69, Nasdaq composite rose 20.16 points, or 0.1 per cent, to 26,713.03, Russell 2000 index of smaller companies rose 37.74 points, or 1.4 per cent, to 2,767.27.

The S&P 500 rose 0.3 per cent after erasing an early-morning loss and pulled closer to its all-time high set last week. The Dow Jones Industrial Average jumped 556 points, or 1.1 per cent, while the Nasdaq composite added 0.1 per cent.

Tech Stocks Drop


Several technology stocks fell, as investors scrutinized AI-related companies whose debt loads leave them vulnerable to rising interest rates.

Nvidia dipped 1.8 per cent after chip manufacturer TSMC struck a cautious note on 2027 despite reporting a sixth consecutive record quarterly profit ‌on robust AI-driven demand. Dell Technologies dropped 6.9 per cent and Hewlett Packard Enterprise fell 7.1 per cent, with both server makers adding to sharp losses in the prior session related to worries about AI companies exposed to higher borrowing costs.

Taiwan Semiconductor Manufacturing Co. ’s stock that trades in the United States dropped as much as 5.3 per cent in the morning before finishing with a more modest loss of 1.8 per cent. The bellwether for the AI industry reported a profit for the latest quarter that topped analysts’ high expectations, and Chief Financial Officer Wendell Huang said it expects strong demand to continue in the final three months of 2026.

CoreWeave, which offers AI computing power to customers over the cloud, fell as much as 9.5 per cent in the morning after tumbling 15.5 per cent a day earlier. It later flipped to a gain and finished 5.9 per cent higher.

Stocks That Made Gains

Drugmaker Eli Lilly gained over 3 per cent, UnitedHealth added 2.8 per cent and Walmart rose 1.4 per cent after rating upgrades by Deutsche Bank. Those three companies were heavy contributors to the S&P 500's gain for the session.

Shares of Rocket Lab dropped 6.6 per cent after the space company said the inaugural launch of its new, larger Neutron rocket was delayed until next year. FMC tumbled over 30 per cent after the agrichemicals company sharply cut its third-quarter outlook.

Marsh & McLennan helped lead the way and rallied 4.6 per cent after the insurance and professional services firm that updated its brand name to Marsh reported a stronger profit for the summer than analysts expected.

Kimberly-Clark climbed 4.7 per cent after the company behind Huggies, Kleenex and Kotex said it expects to report revenue and profit for the latest quarter above what analysts had been expecting. Bank of New York Mellon rose 3.2 per cent after reporting a stronger profit than analysts expected, and CEO Robin Vince said BNY saw strength across its regions.

The Philadelphia semiconductor index fell 0.9 per cent, down for a seventh straight session. Eight of the 11 S&P 500 sector indexes rose, led by healthcare, up 1.84 per cent, followed by a 1.71 per cent gain in materials.

After hitting a record high last week, the S&P 500 remains up about 13 per cent in 2026, with most of that gain fueled by AI-related stocks.

The S&P 500 is trading at about 19 times expected earnings, around its lowest level since 2023. The index's relatively low price-to-earnings valuation suggests investors are pricing in an eventual end to the massive earnings growth fueled by AI heavyweights, Ellerbroek said.

Advancing issues outnumbered falling ones within the S&P 500 by a 3.1-to-1 ratio. The S&P 500 posted 24 new highs and no new lows; the Nasdaq recorded 61 new highs and 393 new lows.