S&P500 and Nasdaq: AI Rebound Lifts US Stocks with Quad-Witching Positioning in Focus

Tech Leads the Charge as Indexes Push Higher Mid-Session

U.S. stocks were grinding higher into the afternoon, with the major indexes leaning on a strong rebound in AI-linked names. The Dow was up 0.55%, the S&P 500 added 0.84%, and the Nasdaq outperformed with a 1.13% gain as traders circled back to big tech after a choppy stretch. The tone wasn’t euphoric, but buyers were clearly willing to lean back into the AI trade — helped in no small part by a sharp pop in Oracle.

Technically, the S&P 500 Index (SPX) is following through to the upside after yesterday’s cross of the 50-day moving average at 6767.50. This is new support as the index approaches its first headwind – the 50% level at 6831.60. This level is the potential trigger point for an acceleration to the upside into the close.

Is AI Back in Favor?

Oracle jumped more than 7% after TikTok agreed to sell its U.S. operations to a joint venture that includes the software giant. That was enough to flip sentiment around a stock that’s been hammered — down over 45% from its September peak — and had become the market’s go-to worry about a potential AI bubble. Its strength helped ease pressure across semis, though traders remain a little cautious given the group is still roughly 4% off its highs.

Nvidia added more than 3% after reports the Trump administration is reviewing the possibility of letting the company sell advanced AI chips into China — a swing that kept dip-buyers engaged.

Micron extended Thursday’s breakout, up another 7% after bullish revenue guidance and comments suggesting demand will outstrip supply “for the foreseeable future.” That line alone helped steady nerves after a jittery week for the space.

Which Sectors Are Carrying the Trade Right Now?

Tech was the clear leader, up 1.6% and pulling the broader market with it. Health care (+0.91%), communication services (+0.76%), and financials (+0.68%) added support. Industrials and materials were firm as well.

On the lagging side, consumer discretionary slid 0.31%, weighed down by Nike’s drop. Staples and utilities were little more than soft pockets of trading, with neither showing much direction.

What’s Moving at the Stock Level?

AI and chip names dominated the winner board: Micron, AMD, Lam Research, Arista, Western Digital — all comfortably higher. Even beaten-up Oracle made the top-gainers list. Travel also caught a bid, with Carnival and Norwegian posting solid gains.

On the downside, Lamb Weston cratered more than 24%. Nike fell nearly 10% after soft China revenue and tariff-related margin pressure. Homebuilders also stayed under pressure, with D.R. Horton, PulteGroup, Lennar, and NVR all trading lower.

How Are Traders Positioning Into Quad Witching?

With more than $7.1 trillion in options set to expire — the biggest expiration on record — traders expected noise, and they’re getting it. Positioning resets were clearly adding fuel to some of the AI swings.

The S&P 500 is basically flat on the week, the Nasdaq is modestly green, and the Dow is still slightly underwater. The market wants to lean bullish, but valuation questions in tech could keep things jumpy into early 2026.

Bottom line: The bid is back in AI for now, but quad-witching flow and stretched valuations mean traders aren’t chasing blindly. Next week’s catalysts — particularly earnings updates and any fresh policy signals — will dictate whether today’s bounce has staying power.

More Information in our Economic Calendar.