Traders work on the floor of the New York Stock Exchange.<\/p>\n
NYSE<\/p>\n
Stocks ticked higher on Wednesday as artificial intelligence giant Nvidia<\/a> recovered some of its losses from the prior session.<\/p>\n The S&P 500<\/a> rose 0.2%, while the Nasdaq Composite<\/a> advanced 0.3%. The Dow Jones Industrial Average<\/a> climbed 102 points, or 0.2%.<\/p>\n Nvidia gained 0.4%, regaining some of the declines from Tuesday that was dominated by heightened fears about the circular nature of the AI industry, sparked by a partnership between the chipmaker and OpenAI<\/a>. Nvidia, along with fellow leading AI player Oracle<\/a>, tumbled that day on worries the advance was running out of steam with the outlook already priced into the shares.<\/p>\n Signaling that confidence in the AI trade is still in question, shares of Micron Technology<\/a> moved lower by almost 2% as the company’s earnings and forecast<\/a> weren’t strong enough to impress investors.<\/p>\n The S&P 500<\/a> closed in the red on Tuesday, snapping a three-day winning streak, on those AI trade worries. The broad market index had reached a new all-time intraday high earlier in the session and posted a record close on Monday. The\u00a0Nasdaq Composite<\/a>\u00a0also fell, bogged down by Nvidia.<\/p>\n Traders could also be profit-taking amid elevated market valuations, which Federal Reserve Chair Jerome Powell\u00a0called out <\/a>at a Tuesday press conference.<\/p>\n Wells Fargo chief equity strategist Ohsung Kwon remains bullish on the AI trade, anticipating that spending will continue to be robust. “I think this is a AI-led bull market, and I think this is likely to continue,” he said Tuesday on CNBC’s “Power Lunch.”<\/a><\/p>\n “First of all, it’s not a bubble,” Kwon continued. “The entire outperformance of the Nasdaq since the end of tech bubble has been driven by better fundamentals in the Nasdaq versus the S&P 500, and I think that’s likely to continue. Second, we still think we are in the early innings of the AI investment cycle. … I think the way this plays out is, as long as the equity market continues to reward companies’ capex outlook and the growth outlook, this is likely to continue.”<\/p>\n