NEW YORK — U.S. technology stocks rebounded on Thursday as broader markets navigated ongoing global economic and geopolitical uncertainty, with semiconductor shares leading gains following recent sharp declines.
The Nasdaq Composite rose about 1% in early trading, while the S&P 500 posted modest gains, according to market data. Chipmakers including Intel, Marvell Technology and others advanced as investors bought shares after a selloff earlier in the week.
The moves came amid persistent concerns over valuations in the artificial intelligence sector, tensions in the Middle East affecting energy prices, and mixed economic signals. Technology shares had faced pressure in recent sessions, with the S&P 500 technology sector down significantly from its early June highs.
Analysts pointed to bargain hunting after steep losses. The Philadelphia Semiconductor Index had surged more than 5% on Monday in a prior rebound, recovering some ground lost during a session that erased over $1 trillion in market value for U.S.-listed chipmakers.
"Investors are seeking opportunities in the sector after the recent volatility," one market participant noted, though specific attribution was not immediately available in reports.
Broader context includes elevated uncertainty from geopolitical developments, including U.S.-Iran relations, which have influenced oil prices and investor sentiment. Global growth projections for 2026 remain cautious, with organizations like the IMF and OECD citing risks from trade tensions, energy shocks and policy uncertainty.
Despite the pullback, technology and AI-related spending continued to support earnings expectations for many companies. Semiconductor firms have benefited from demand tied to AI infrastructure, though analysts have warned of stretched valuations in parts of the sector.
The rebound occurred ahead of key data releases, including preliminary University of Michigan consumer sentiment figures for June. Markets also monitored developments around major events such as the anticipated SpaceX IPO.
Wall Street indexes had closed lower earlier in the week, with the Dow Jones Industrial Average, S&P 500 and Nasdaq all declining on Wednesday amid renewed tech sector weakness.
As of midday trading on Thursday, major indexes showed mixed performance, with gains in technology partially offset by other sectors. Details on closing levels and full sector performance remained subject to market movements.
No major policy announcements from the Federal Reserve or significant corporate earnings were reported as driving the session. Officials and analysts continued to emphasize the importance of underlying fundamentals amid the uncertainty.
