S&P 500 Rebound Faces a Key Test as Downside Risks Persist

Global equities rebounded Thursday as oil prices retreated, but investors remain cautious. The semiconductor sector faces pressure as AI optimism is reassessed amid valuation concerns. Inflation data keeps Fed rate hike expectations elevated, while geopolitical tensions in the Middle East continue to influence energy markets. The S&P 500 remains in a short-term bearish trend despite today's gains, with key technical support levels at 7,354 and 7,256.