S&P 500 Climbs as Micron Lead Powerful Tech Rebound -- Palantir Extends Brutal Sell-Off

This article first appeared on GuruFocus.

U.S. stocks ticked up Wednesday after Tuesday's sell-off, with the S&P 500 rising 0.3% and the Nasdaq Composite up 0.5%, while the Dow Jones Industrial Average added 82 points, or about 0.2%.

Chipmaker Advanced Micro Devices (NASDAQ:AMD) turned positive and Broadcom (NASDAQ:AVGO) and Micron Technology (NASDAQ:MU) rallied, reversing prior losses, Micron jumped about 6% and Broadcom rose about 3%, as investors looked past short-term valuation worries in AI-related names.

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Nvidia (NVDA) and Oracle (ORCL) recovered marginally from Tuesday's pullback, but Palantir Technologies (PLTR) remained under pressure. Palantir, which trades at more than 200 times forward earnings, plunged about 8% on Tuesday and extended weakness into Wednesday, falling more than 3%.

Some AI-linked stocks continued to struggle after mixed quarterly reports: Super Micro Computer (SMCI) and Arista Networks (ANET) each slid roughly 7% following weak results.

Economically, upbeat ADP payrolls and a stronger-than-expected ISM services reading supported risk appetite, though higher yields and an ongoing Supreme Court hearing on presidential tariff authority kept markets wary.

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