Market concerns over high company valuations in the AI sector are creating turbulence. The fear is that companies' investments in each other are creating a bubble.
But on Wednesday, investors regained some of Tuesday's dip.
The tech-heavy Nasdaq Composite Index climbed 0.7 percent, the Dow Jones Industrial Average rose 0.5 percent and the broad-based S&P 500 gained 0.4 percent.
The US Supreme Court's critical questions about the legality of President Donald Trump's tariffs also contributed to the happier mood.
Chipmakers central to AI development led the rally. AMD's stock closed up 2.5 percent after the company delivered a quarterly report that beat expectations after the close on Tuesday. Sector peers such as Broadcom and Micron Technology followed suit, up 2.0 and 8.9 percent, respectively.
Software and analytics company Palantir, which plunged around 8 percent the previous day, continued its decline, down 1.5 percent. Giant Nvidia also fell, down 1.8 percent.
