Wall Street staged a broad-based rebound Wednesday, with all three major indexes closing higher as investors warmed to fresh signals that the U.S. and key trading partners are making behind-the-scenes progress toward easing tariff tensions. The S&P 500 climbed 0.87% to close at 5,724, the Nasdaq led gains at 1.14%, and the Dow added 0.63% to settle around 42,180.
Tech was the clear driver of the day. Nvidia rallied 4.2%, lifting the semiconductor complex and giving AI-linked names a fresh jolt of momentum. The reported data center deal underscored that demand for advanced chips remains voracious, even as broader macro uncertainty lingers. Meta, Microsoft, and AMD all caught bids in sympathy, keeping the Nasdaq firmly in the green throughout the session.
On the downside, CVS Health was the session's most notable casualty, tumbling 5.1% after the company slashed its 2026 profit outlook. Management pointed to persistently elevated medical utilization rates — a trend that has haunted the managed care space for months. Rivals UnitedHealth and Humana also dipped modestly in response.
The VIX eased to 22.4, suggesting fear is slowly unwinding but hasn't fully left the building. Oil held near $79.60 a barrel, and gold remained elevated at $2,418 as investors continued to hedge against geopolitical uncertainty. Overall, the mood shifted cautiously optimistic, though traders remain keenly aware that one negative trade headline could quickly reverse the week's gains.