US Equities Rebound, Dow Rises to Record
2026-07-01 15:49
By
Andre Joaquim
1 min. read
US equity indices rose from session lows on Wednesday as markets gauged the likelihood of a Fed rate hike this year and how much room is left on the AI trade.
The S&P 500 gained 0.4% and the Dow rose 250 points to a new record high.
Fed Chairman Warsh noted that inflation risks are decreasing and ISM Manufacturing prices fell sharply more than expected in June, limiting the need for an urgent hawkish response by the US central bank.
Hyperscalers making up the Magnificent 7 extended their rebound after underperforming AI infrastructure companies since mid-May, with Microsoft, Amazon, and Alphabet adding more than 2%.
Also, Meta soared11% after announcing plans to develop a cloud business to sell its excess AI compute capacity.
Still, the Nasdaq 100 was 1% lower.
Chip producers dropped after leading the rally for global stock markets, reigniting the AI trade despite lingering warnings that the sector is overleveraged.
Micron and Sandisk fell over 8%.