Wall Street Bounces Back From AI Sell-Off

US stock indexes muscled higher on Thursday following a shaky day of trading.

• The S&P 500 rose 25.12 points, or 0.3%, to 7,744.06 after erasing an early-morning loss.
• The Dow Jones Industrial Average rose 556.21 points, or 1.1%, to 52,177.69.
• The Nasdaq composite rose 20.16 points, or 0.1%, to 26,713.03.

Markets had been shaky in the morning, when worries about the strength of the AI boom sent stock indexes tumbling across Asia, the AP reports. But AI stocks pared their losses as the day progressed, while strong profit reports from US companies helped lift other stocks. Treasury yields fell despite another report saying US inflation is worsening.

A sell-off for AI stocks that began on Wall Street Wednesday whipped around the world and sent South Korea's Kospi stock index down 7.6% and Japan's Nikkei 225 down 4.9% before knocking the S&P 500 lower at the start of Thursday's trading.

• CoreWeave, which offers AI computing power to customers over the cloud, fell as much as 9.5% in the morning after tumbling 15.5% a day earlier. But the losses for AI stocks moderated as the day progressed, which helped broad US indexes to steady. CoreWeave flipped to a gain of 5.9%. Nvidia, the chip company that's ridden the AI boom to become Wall Street's most valuable company, fell 1.8% and was the heaviest weight on the S&P 500.

Stocks outside of AI were resilient, and seven out of every 10 stocks in the S&P 500 rose. Marsh & McLennan helped lead the market after the insurance and professional services firm reported a stronger profit for the summer than analysts expected. The company, which updated its brand name to Marsh earlier this year, also made more revenue than expected, and its stock climbed 4.5%.

• The yield on the 10-year Treasury sank to 5.08% from 5.19% late Wednesday. It had topped 5.30% earlier this month and touched its highest level since 2002 because of worries about high inflation, signals of a strong US economy, and other factors.