US equity benchmarks rebounded in volatile trading on Wednesday, as solid macroeconomic data clashed with expectations for prolonged restrictive monetary policy and renewed concerns over AI-driven disruption. The S&P 500 and Nasdaq 100 each advanced 0.3%, while the Dow Jones Industrial Average notched another record close above 50,200.
Non-farm payrolls increased by 130,000, more than double consensus estimates, driven by private-sector hiring, while the unemployment rate unexpectedly declined. The data highlighted ongoing resilience in the labor market and ran counter to more dovish guidance recently signaled by some Federal Reserve officials.
AI infrastructure names outperformed, with Micron, Texas Instruments, and Lam Research each gaining more than 5%. By contrast, software stocks came under renewed selling pressure amid concerns that their business models could be eroded by AI automation tools. Salesforce, ServiceNow, and Intuit declined more than 5%, and Oracle and Palantir slipped more than 2%.
In individual names, T-Mobile fell 5% after reporting subscriber growth below expectations, while Humana lost around 1% following its earnings release.
