NEW YORK (AP) — On Wednesday, U.S. stock markets showed signs of recovery, bouncing back from a four-day decline that momentarily disrupted Wall Street, pushing it away from record highs and impacting several leading stocks.

The S&P 500 climbed 0.4% during midday trading, positioning itself for the strongest performance it has seen in nearly two weeks. The Nasdaq composite, which experienced the largest loss the previous day, rebounded with a 0.8% increase. Meanwhile, the Dow Jones Industrial Average showed a slight drop of 45 points, equivalent to 0.1%, as of 12:53 p.m. Eastern time.

The stock market had faced challenges due to several weaker-than-expected economic reports, with some indicating that economic indicators are causing U.S. households to adopt a more pessimistic outlook regarding inflation and the impact of tariffs introduced by President Donald Trump. Notably, tech giants and high-growth stocks experienced some of the steepest declines, reversing their previous momentum.

Super Micro Computer, a notable player in the booming artificial intelligence sector, saw its stock drop nearly 25% over four days. However, on Wednesday, it rebounded impressively, gaining 17.9% after finally submitting its annual report for the fiscal year ending in June.

Super Micro, which provides servers integral to AI and other computing applications, had postponed filing its annual report and other regulatory documents due to issues raised by its former accounting firm regarding financial reporting and governance practices. Consequently, it sought extensions from Nasdaq to complete necessary filings while undergoing a review and brought in a new accounting firm.

In a significant market development, General Motors saw a surge of 4.6% after unveiling a stock buyback program worth up to $6 billion. Additionally, the automaker announced a dividend increase to benefit its shareholders.

The market’s focus remained heavily on Nvidia, a leading chip manufacturer that has become symbolic of the AI surge. The company’s shares climbed by 4.1% ahead of its forthcoming earnings report, set to be released after the market closes.

This will mark the first earnings announcement for both Nvidia and its CEO, Jensen Huang, since a Chinese competitor, DeepSeek, made headlines by introducing a large language model that could rival U.S. firms without relying on the most expensive chip technology. This revelation raised questions about the financial assumptions that Wall Street had about Nvidia’s chips and the related AI infrastructure, including energy costs for massive data centers.

Despite these developments, several major tech companies have indicated they will continue to invest billions in AI, sending positive signals across the sector.

NRG Energy experienced a remarkable 11.1% increase on Wednesday after announcing a collaboration with GE Vernova and a Kiewit subsidiary to boost electricity generation for AI data centers. GE Vernova’s stock also jumped by 6.3%.

NRG reported quarterly results that exceeded analysts’ expectations, contributing to a trend of better-than-anticipated earnings among S&P 500 firms for the end of 2024.

Another notable gain came from off-price retailer TJX, which saw its stock rise by 3.2%. The parent company of TJ Maxx and Marshalls announced plans for a 13% dividend increase along with a stock buyback initiative worth $2.5 billion.

Concerns linger regarding whether U.S. consumers will reduce spending amid persistent inflationary pressures and economic uncertainties. However, TJX CEO Ernie Herrman stated that the company has thrived due to its off-price model and foresees growth opportunities in the long run.

In the bond market, Treasury yields stabilized after significant declines in recent days related to economic fears. The yield on the 10-year Treasury slightly dipped to 4.28%, down from 4.30% late Tuesday, having neared 4.80% just a month ago.

On Thursday, the U.S. Commerce Department will release its final estimate regarding economic performance in the last quarter of 2024. Current indicators suggest that the economy remains in good shape, with ongoing growth, although future uncertainties are on the rise. A follow-up report on Friday will provide insights into the inflation metrics favored by the Federal Reserve.

Should these reports indicate slowing economic growth alongside rising inflation, it could create a challenging scenario that may overwhelm the Federal Reserve’s capacity to respond. Mark Hackett, chief market strategist at Nationwide, emphasized, “Stagflation is the greatest risk currently facing the markets.”

Internationally, stock indexes in much of Europe and Asia experienced gains. France’s CAC 40 increased by 1.2%, while Hong Kong’s Hang Seng soared 3.3%. Japan’s Nikkei 225 index, however, was an exception, slipping 0.2% as major trading companies faced losses following Warren Buffett’s annual letter revealing increased investments in those firms through Berkshire Hathaway.

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this report.