Tech stocks bounce back, but most stocks sit out

The story

Investors who like to buy after a drop came back to chip and AI stocks, Bloomberg reported. They're betting the AI spending boom keeps company earnings strong. The Nasdaq rose about 1.1%, and Amazon jumped about 5%.

The rally was narrow, though. Most stocks in the S&P 500 didn't join in, Yahoo Finance reported, so the index rose only about 0.4%. The Dow finished roughly flat, down less than 0.1%.

The interest rate on 10-year government bonds rose to around 5.14%. Bloomberg reported that the tech rebound cut demand for bonds, which people buy when they're nervous, and worry over the government's borrowing plans added pressure. That keeps mortgage rates high for Maine homebuyers. The market's fear gauge fell about 7%, which probably reflects calmer nerves as stocks rose. Hedge funds had also cut their tech holdings at the fastest pace in a decade, which likely left room for a bounce.

Also today

• Natural gas fell about 6% to around $3, and no headline explains why.
• Oil slipped under 1% as Energy Secretary Wright said the U.S. will let some sanctioned tankers carry oil legally, Bloomberg reported. The link to today's move is a loose one.

Storylines

• AI and tech whiplash: Monday's sharp bounce followed last week's selloff, when hedge funds dumped tech at the fastest pace in a decade.
• Long-term rates above 5%: The 10-year rate climbed back toward 5.14% as demand for bonds faded and borrowing worries grew.
• Big earnings week: Meta and SpaceX report this week, after early results that Wells Fargo called weak.
• Middle East and energy costs: Saudi Arabia postponed its flagship investor summit over Houthi attacks, and oil is still near $98 to $109 a barrel.

Temperature

Neutral · relieved: Tech bounced and the fear gauge eased, but most stocks didn't join in, so it wasn't a broad cheer.