US stocks climbed early Thursday in a rebound after the major indexes suffered their worst daily sell-off in months.
The S&P 500 (^GSPC) popped about 0.8% at the market open, a comeback from the biggest single-day loss for the benchmark index since October. The Dow Jones Industrial Average (^DJI) rose 0.7%, while the teach-heavy Nasdaq Composite (^IXIC) gained 1.2% after both indexes snapped nine-day win streaks.
Warnings have come from some investors that stocks were ripe for a pullback after a record-breaking rally driven by expectations the Federal Reserve will pivot to cutting interest rates, potentially as soon as March.
The market has stuck to that conviction despite pushback from central bank officials, keeping stock prices aloft until the rally’s breather on Wednesday.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
There was no clear culprit for Wednesday’s sharp slide, and a range were put forward by commentators: Worries about the US economy after bellwether FedEx’s (FDX) downbeat revenue forecast, year-end profit-taking, and zero-day options trading among them.
In individual stocks, Micron Technology (MU) shares rose more than 8% early Thursday after the memory chipmaker’s second-quarter revenue forecast topped Wall Street’s expectations. The outlook signals a 2024 revival for the memory chip sector, which has suffered a significant slump in prices.
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