The S&P 500 and Nasdaq composite posted their biggest one-day gains in six weeks.

Investors returned to AI stocks, snapping the market out of its inflation gloom. The rally marked a sharp reversal after weeks of selling pressure.

The gains were led by technology and AI-related shares, which had been hit hard by worries over rising prices and interest rates. The S&P 500 and Nasdaq composite both recorded their largest single-day advances in six weeks.

Market participants pointed to renewed appetite for growth sectors as a sign that inflation fears may be easing. The rebound lifted major indexes and offered relief to investors who had grown cautious.

The S&P 500 and Nasdaq composite posted their biggest one-day gains in six weeks.