Wall Street rebounds as investors buy the dip, Dow gains 1.1%

The Dow Jones Industrial Average rose 1.1 percent, the S&P 500 rose 0.3 percent and the tech-heavy Nasdaq Composite rose 0.1 percent.

Harsh inflation figures for September, released earlier this week, also weighed on trading early Thursday, while concerns about overvaluation and debt at many AI companies persisted.

But investors gradually regained their confidence during the day, accepted the risks and pressed the buy button. The rise in the Dow shows investors favored established large companies, which make up the index.

Some AI companies also recovered from earlier declines this week. CoreWeave, for example, rose 6 percent after plunging just over 15 percent the previous day.

Micron Technology also bounced back, reversing Wednesday’s fall to post a 1.9 percent gain.