Wall Street Rebounds With Broad Gains as Oil Slides Sharply

Wall Street’s major indexes rose with broad-based gains on Wednesday after two straight sessions of declines, as a sharp retreat in oil prices aided sentiment while investors awaited Micron’s earnings.

Oil prices fell to their lowest since the start of the Iran war as more oil tankers were expected to move out of the Strait of Hormuz. U.S. President Donald Trump said Iran had told Washington that no tolls were being sought.

Airlines and cruise operators moved higher with the S&P 500 passenger airlines index last up 4.4% at an all-time high. Industrial shares rose 1.8%.

With high-flying tech shares coming under renewed pressure, other areas of the market such as healthcare and consumer staples have benefited in recent days.

“There is a bit of profit-taking right off the top when you look at some of the names that have been rotating out, especially yesterday, and where the money is going into,” said Brian Mulberry, chief market strategist at Zacks Investment Management.

“It seems like a really clear rotation of people blowing off the top and coming back into names that are either undervalued or a little bit overlooked.”

Concerns around debt-backed spending by hyperscalers and a potentially more hawkish Federal Reserve fueled the market downturn this week, wiping off more than $1 trillion in market value from the Nasdaq 100.

Increased volatility in tech names has intensified focus on Micron’s results due after the bell, as it is a key beneficiary of surging demand from companies investing billions in AI infrastructure. The stock has surged more than 250% in 2026 and was last down 1.3%.

Nine of the 11 major S&P 500 sectors moved higher, with the consumer discretionary sector rising the most at 2.4%.

At 11:42 a.m. ET, the Dow Jones Industrial Average rose 527.17 points, or 1.03%, to 52,194.01, the S&P 500 gained 48.75 points, or 0.66%, to 7,414.21 and the Nasdaq Composite gained 165.68 points, or 0.65%, to 25,752.72.

Homebuilders soared after Trump canceled a planned signing of bipartisan legislation aimed at speeding up availability of affordable housing. Hovnanian Enterprise jumped 13.5%, while Pultegroup and Toll Brothers rose 9.4% and 8.4%, respectively.

Middle East developments were closely monitored with the U.S. and Iran offering conflicting accounts on a range of key issues including financial incentives for Iran, control over the Strait of Hormuz and Israel’s war in Lebanon.

Optimism surrounding an end to the war and strong earnings growth expectations have put the S&P 500 on track for its strongest quarterly gain in six years, despite expectations of higher interest rates.

Traders are adding to bets of a second rate hike from the Fed by December-end, according to CME Group’s FedWatch tool, from prior expectations of a single 25-basis-point rise.

The closely watched Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, could offer fresh insight on the monetary policy path on Thursday.

Among other movers, Cerebras Systems tumbled 17.3% after the chip designer forecast full-year profit margins would drop below first-quarter figures in its debut report after going public.

Hertz tumbled 28% after the car rental firm said it expects second-quarter adjusted core earnings near the lower end of its forecast range and announced a proposed offering of $100 million of common stock.

Advancing issues outnumbered decliners by a 1.56-to-1 ratio on the NYSE and by a 1.55-to-1 ratio on the Nasdaq.

The S&P 500 posted 21 new 52-week highs and 3 new lows while the Nasdaq Composite recorded 167 new highs and 105 new lows.

(Reporting by Twesha Dikshit and Joel Jose in Bengaluru; Editing by Mrigank Dhaniwala and Devika Syamnath)

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