Nasdaq Recovers, but Industrial Stocks Are Still Struggling

The Nasdaq composite mounted a significant intraday rebound, narrowing its decline to just 0.1% after tumbling as much as 1.3% earlier in the trading session. A positive close would represent the tech-heavy benchmark's largest intraday reversal since April 7, driven by afternoon gains in megacap technology, enterprise software, and cybersecurity stocks. In contrast to the tech sector's resilience, industrial stocks within the broader market remained under notable selling pressure. Investors showed heightened caution toward industrials amid growing concerns that an artificial intelligence safety slowdown could reduce or delay anticipated revenue growth from future data center infrastructure projects. Broader macroeconomic headwinds also influenced trading sentiment, with the 10-year U.S. Treasury yield touching the 5% threshold following a surge in oil prices, while market participants prepared for the Federal Reserve's upcoming interest rate decision. Market performance across sectors remains divergent as tech attempts to stabilize while capital equipment and industrial suppliers face ongoing valuation and demand questions.