Stocks Rebound After Two Volatile Sessions as AI Trade Steadies; Micron Earnings in Focus

U.S. equities steadied on Wednesday, June 24, after two whipsaw sessions that reignited debate over the durability of the artificial intelligence trade. The S&P 500 advanced 0.35% and the Nasdaq Composite climbed 0.62%, a partial recovery from a brutal Tuesday in which the S&P 500 fell roughly 1.4% and the Nasdaq 100 shed 3.3%. The damage Tuesday was concentrated in AI infrastructure names. Semiconductor and memory-chip producers bore the brunt as investors questioned whether massive capital spending by hyperscalers will generate adequate returns. Nvidia (NVDA) dropped about 4.2%, Broadcom (AVGO) fell 3.1%, Qualcomm (QCOM) slid 8%, AMD lost 5.8%, while memory makers Micron (MU) and SanDisk (SNDK) cratered roughly 13%. The Philadelphia Semiconductor Index had earlier plunged about 10% in a single session, with Nvidia at one point losing more than $300 billion in market value. Wednesday's tone was calmer. Chip names recovered modest ground in after-hours and early trading, with Micron and SanDisk each ticking higher after their Tuesday rout. Alphabet (GOOGL) rose around 0.5% on news it will join the Dow Jones Industrial Average before Monday's open, replacing one of the index's 30 components. The rebound carried a cautious undertone. Prediction-market traders on Polymarket had priced in a 71% chance the S&P 500 would open higher Wednesday, reflecting hopes that the pullback was a valuation reset rather than the start of a deeper unwind. Bulls point to roughly $750 billion in committed 2026 hyperscaler capital expenditure as evidence the AI buildout remains intact, even if individual stock valuations have run ahead of fundamentals. The session's pivotal event arrived after the closing bell: Micron Technology's earnings report. Analysts framed the print as a referendum on the broader AI infrastructure thesis. Strong results and upbeat guidance on memory demand could restore confidence across the semiconductor complex following this week's pullback, while any disappointment risks triggering a fresh wave of selling. For now, the modest gains suggest investors are willing to buy the dip selectively rather than abandon the AI theme outright. But the magnitude of recent swings, double-digit single-session moves in marquee chip stocks, signals that volatility is likely to persist as the market reprices the gap between AI spending and AI returns. Traders will look to Micron's guidance, and to forthcoming inflation data, for clearer direction on whether this week's rebound marks a bottom or merely a pause. Sources: [CNN Business](https://www.cnn.com/2026/06/09/investing/nasdaq-sp500-dow-drop-ai), [Benzinga](https://www.benzinga.com/markets/prediction-markets/26/06/60063179/sp500-june-24-open-up-or-down-polymarket-micron-earnings-oil-prices-ai-selloff), [24/7 Wall St.](https://247wallst.com/investing/2026/06/24/stock-market-live-june-24-2026-sp-500-spy-attempting-to-regain-momentum/), [CoinCentral](https://coincentral.com/pre-market-update-sp-500-and-nasdaq-eye-rebound-after-ai-stock-selloff/)