Damian Troise and Alex Veiga
Updated ,first published
Stocks rose on Wall Street as gains by big technology companies and relatively steady oil prices and bond yields helped boost the market after a downbeat start to the week.
Nvidia rallied more than 3 per cent, lifting the Dow Jones Industrial Average 0.6 per cent. The S&P 500 and the Nasdaq composite both gained 0.5 per cent.
Brent crude settled up 1 per cent at $US95.63 as the Iran conflict continued. Chevron edged 0.3 per cent higher after confirming it will expand operations in Venezuela.
The Australian sharemarket is set for gains, with futures at 5.57am AEST pointing to a rise of 38 points, or 0.4 per cent at the open. The ASX lost 1 per cent on Wednesday. The Australian dollar is stronger at US71.71¢
Wall Street has been under pressure this week from rising oil prices and a bond-market sell-off. The rocky start to September follows a mostly positive August during which every major index notched a gain for the month.
However, Wall Street remains gripped by anxiety over rising prices, government debt and the impact of global conflicts on the US and the global economy.
Technology and communication services stocks accounted for some of the strongest gains Wednesday. Chipmaker Nvidia, whose big market value tend to give it more influence over the broader market’s direction, rose 3.2 per cent, while computer memory seller Micron Technology gained 2.4 per cent.
Meta added 2.5 per cent as it released its most powerful artificial intelligence model yet, with its chief AI officer saying its capabilities are edging closer to top competitors. Developers on Wednesday will be able to access and pay for Muse Spark 1.3, an updated version of its most advanced model, the company said. It will soon roll out the update to users of Meta’s social media platforms, like Instagram and Facebook, as well as Meta AI.
“This is our biggest jump so far on model performance,” Meta’s chief AI officer Alexandr Wang said in an interview on Wednesday, pointing to advancements in the model’s coding and agentic capabilities, or ability to complete tasks on behalf of human users. Wang said the update put Meta on par with recently released AI models from its rivals OpenAI and Anthropic.
Dell Technologies jumped 15.8 per cent for the biggest gain among S&P 500 stocks after delivering strong second-quarter profits amid accelerating demand for artificial intelligence computing. The company also raised its fiscal year revenue outlook.
Palo Alto Networks also reported quarterly results that topped Wall Street’s expectations, citing a strong market for AI cybersecurity, but its shares fell 9.3 per cent.
Meanwhile, banks and credit card issuers also helped boost the market. Capital One Financial rose 2.5 per cent and American Express added 1.8 per cent.
Markets in Europe fell after markets in Asia closed lower.
Oil prices held relatively steady despite the intensification in the six-month long US war with Iran. The US attacked sites in Iran over the weekend, ending a lull in major hostilities and Iran has since retaliated against sites around the Gulf region.
Prices for Brent crude, the international standard, rose 0.7 per cent to $US95.33 a barrel. Energy stocks were mixed. Chevron edged 0.4 per cent higher after confirming it will expand operations in Venezuela.
A surge in oil prices following the start of the US war with Iran fuelled a jump in gasoline prices and global shipping costs. The conflict shut down the Strait of Hormuz, through which 20 per cent of the world’s oil is typically shipped.
Higher energy costs worsened inflation that was already stubbornly high amid a volatile US tariff war with much of the world.
Inflation has been squeezing businesses and households at the same time that the mostly resilient jobs market shows signs of weakening. Payrolls processing firm ADP reported that private-sector employment slipped in August, according to its monthly survey. It is just a small snapshot, though, of the broader labour market and follows a government report on Tuesday that showed US job openings rose in July.
The big focus this week will be the government’s broader employment report for August, which will be released on Friday. The previous report for July showed that the jobs market stalled, with employers cutting positions.
Both inflation and the jobs market have been key focuses for Wall Street and the Federal Reserve.
“Friday’s employment report, and perhaps even more importantly next week’s inflation data, will play a significant role in determining whether policymakers decide to raise rates in September,” said Angelo Kourkafas, senior global strategist, investment strategy at Edward Jones, in a research note.
The Fed is trying to balance its task of supporting employment and taming inflation. Wall Street expects the central bank to raise interest rates before the year ends in an effort to cool inflation, which remains well above 3 per cent. The Fed has a stated goal of cooling inflation to a target of 2 per cent.
The bond market has been selling off, which is a signal that it expects borrowing costs to rise.
The yield on the 10-year Treasury, which tends to impact mortgage rates, rose to 4.80 per cent from 4.79 per cent late Tuesday. It has been rising steadily throughout the year and was as low as 4.20 per cent at the beginning of 2026.
The yield on the 2-year Treasury, which closely tracks expectations for Federal Reserve moves on interest rates, held steady at 4.39 per cent. It is significantly higher for the year, though, and was as low as 3.50 per cent at the beginning of 2026.
Investors are also betting on a 64 per cent chance that the Fed will raise rates at its upcoming meeting in September, according to CME FedWatch.
The Fed’s position is growing more complicated. Raising the benchmark interest rate would help cool inflation by making borrowing costs higher and slowing the economy. Doing so, though, could also hurt the employment market at a time when it is seemingly already weakening.
