US equities staged a robust recovery as the S&P 500 climbed 2.35% and the VIX index recorded its sharpest decline since April 2025, fueled by a rebound in AI-exposed and semiconductor assets.
The S&P 500 rose 2.35%, its strongest day since the April Iran ceasefire announcement, led by AI and semiconductor names after positioning had turned underweight. The index is now only down -0.25% in the four business days since the midterms, signaling a rapid recovery of recent losses.
The VIX fell 5.72 points, its sharpest daily decline since April 2025, as investors became more optimistic on the near-term outlook and risk factors faded. A falling VIX reflects reduced demand for equity hedges.
The rally was led by AI-related and semiconductor names, which are heavily weighted in the Nasdaq 100, and these assets continued to recover from last Thursday's slump. The index itself is not named, so the effect is inferred rather than directly reported.
The S&P 500 surged 2.35% in its strongest daily performance since the Iran ceasefire in April, effectively erasing post-midterm losses. The rally, driven by AI and semiconductor stocks, coincided with a sharp 5.72-point drop in the VIX volatility index as investor optimism returned.
The index rose 2.35%, its best day since the Iran ceasefire announcement in April.
AI-related and semiconductor stocks led the move after positioning had turned underweight, and main risk factors faded into the background.
It fell 5.72 points, its sharpest daily decline since April 2025, when equities rebounded from the post-Liberation Day sell-off.
AI-related and semiconductor names led the rally after positioning had turned underweight.