Dow and Nasdaq Indexes Rebound Off Support After Selloff, But SMCI Stock Falters
U.S. stocks bounced back on Thursday, reversing part of yesterday’s steep losses, though traders remain wary amid lingering volatility and..
Quick overview
- U.S. stocks rebounded on Thursday, with the Nasdaq leading the recovery by climbing 0.65%.
- Consumer discretionary stocks drove sector strength, benefiting from optimism regarding tariff limitations.
- Despite the gains, investor sentiment remains cautious, particularly towards high-growth tech stocks.
- The market's future direction may depend on the stability of key support levels amid ongoing volatility.
Live DOW Chart
U.S. stocks bounced back on Thursday, reversing part of yesterday’s steep losses, though traders remain wary amid lingering volatility and sector churn.
Nasdaq Leads the Recovery
The Nasdaq Composite spearheaded the rebound, climbing 0.65%, while the S&P 500 gained 0.37% and the Dow Jones Industrial Average added 0.48%. The move came after a sharp selloff in the previous session, where the Nasdaq dropped 2.04% and the S&P 500 fell 1.17%.
Nasdaq Chart Daily – MAs Holding As Support
Both the Nasdaq and DOW found crucial support at their 20-day moving averages, a trendline that has repeatedly acted as a springboard for buyers throughout the current uptrend.
Dow Jones Chart Daily – MAs Holding As Support
Sector Strength Driven by Consumer Discretionary
Out of the S&P 500’s 11 sectors, seven closed higher, led by consumer discretionary, which advanced 1.12%. That group — previously weighed down by tariff concerns and weakening consumer sentiment — benefited from optimism that the U.S. Supreme Court may limit former President Trump’s tariff powers, easing pressure on retail importers and consumer goods firms.
Materials, health care, and industrials also posted solid gains, while communication services and technology lagged slightly.
Caution Creeps Beneath the Surface
While the rebound was welcomed after Wednesday’s rout, underlying sentiment remains fragile. Investors showed hesitancy toward high-growth tech names, particularly NVIDIA and Super Micro Computer, both of which continue to see heavy profit-taking after extended rallies.
In contrast, airlines, automakers, and clean energy stocks drew buying interest, signaling a rotation toward cyclical and value-oriented sectors.
Markets End Higher Despite Mixed Sector Performance
U.S. equities closed modestly higher, lifted by gains in consumer and travel stocks, though weakness in tech and communication services capped broader momentum.
Major Indexes Finish in Positive Territory
- Dow Jones Industrial Average: +5.76 points (+0.48%) to 47,311.00
- S&P 500 Index: +24.74 points (+0.37%) to 6,796.29
- NASDAQ Composite: +151.16 points (+0.65%) to 23,499.80
Sector Performance Snapshot
Top Performers:
- Consumer Discretionary: +1.12%
- Materials: +0.54%
- Health Care: +0.44%
- Industrials: +0.40%
- Financials: +0.28%
- Lagging Sectors:
- Energy: +0.19%
- Utilities: +0.04%
- Real Estate: −0.06%
- Information Technology: −0.08%
- Consumer Staples: −0.20%
- Communication Services: −0.36%
Top Gainers of the Day
- Micron Technology: +8.93% — Strong chip demand and upbeat outlook boosted the stock.
- Southwest Airlines: +6.56% — Rebound in travel sentiment helped lift airline shares.
- United Airlines Holdings: +6.47%
- American Airlines: +6.13%
- Lam Research: +5.95% — Benefited from optimism around semiconductor equipment orders.
- Nebius NV: +5.82%
- First Solar: +5.59% — Solar and clean energy names gained momentum.
- iShares Global Clean Energy ETF: +5.42%
- Western Digital: +5.16%
- Delta Air Lines: +5.15%
- Stellantis NV: +4.33%
- Robinhood Markets: +4.15%
- Tesla: +4.03% — Recovered after a recent pullback in EV stocks.
Notable Losers
- Super Micro Computer: −11.34% — Heavy profit-taking hit the high-flying AI server maker.
- Live Nation Entertainment: −10.42% — Concerns over regulatory scrutiny weighed on shares.
- Papa John’s: −5.08%
- Emerson Electric: −3.84%
- Home Depot: −2.42%
- Lockheed Martin: −2.40%
- Chewy: −2.13%
- Bank of America: −2.05%
- Uber Technologies: −2.02%
- ProShares UltraPro Short QQQ: −1.99%
- Roblox: −1.86%
- Synopsys: −1.81%
- NVIDIA: −1.77% — Pulled lower as investors rotated out of large-cap AI names.
Conclusion: A Temporary Bounce Amid Ongoing Rotation
Thursday’s recovery restored some market confidence, but the tone was more defensive than euphoric. Traders continue to favor short-term bargains in sectors tied to real-world demand, while AI and tech valuations face increasing scrutiny.
With volatility still elevated and earnings season approaching its peak, the market’s next move may hinge on whether the 20-day support levels hold — or give way to a deeper correction.
Dow Jones Live Chart
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