U.S. stocks rebound as oil falls and investors rotate from tech

Stocks snapped back Wednesday as Brent crude fell to $73.65 a barrel, its lowest level since the Iran war began, and traders rushed into airlines and other economically sensitive names after two straight losing sessions. The S&P 500 passenger airlines index jumped 4.4% to an all-time high, while industrial shares rose 1.8%; healthcare and consumer staples also drew buying as money rotated away from expensive technology stocks.

Cheaper crude pushed against one of the market’s sharpest inflation worries. It tends to ease fuel costs for airlines, shipping and freight, and it can cool expectations for consumer price pressure later in the year, which in turn gives investors less reason to fear a more hawkish Federal Reserve. That helped tilt the day’s trade toward cyclicals and defensive sectors even after a punishing run in AI-linked shares.

The tech pullback was severe. The Nasdaq 100 was on pace to erase more than $1 trillion in market value during the week’s selloff. Investors had been scrutinizing debt-funded AI spending by hyperscalers and bracing for a more hawkish Fed, while Micron Technology sat at the center of the debate because of its role in the memory-chip cycle tied to AI infrastructure. Micron was scheduled to report fiscal third-quarter 2026 results at 4:30 p.m. EDT, followed by a post-earnings analyst call at 6:00 p.m. EDT.

Donald Trump canceled a planned signing of the bipartisan 21st Century ROAD to Housing Act, saying he wanted Congress to pass the SAVE America Act first.