Major indices are rebounding from a late-morning slide and holding modest gains. Strength in the mega-caps is helping the indices to advance.

Materials (XLB) and Energy (XLE) are lagging as commodity prices edge lower and amid strong Technology (XLK) leadership. Financials (XLF) also trade modestly higher, with Coinbase Global (COIN) and Robinhood Markets (HOOD) leading as Bitcoin rebounds.

The resolve has caused the Fear and Greed index to finally edge out of the extreme fear zone.

Amazon (AMZN) announced a new AI chip, Trainium 3, in another bid to compete with Nvidia (NVDA) GPUs and TPUs from Google (GOOG/L). Amazon (AMZN) said its latest Trainium 3 chip, with the new UltraServers, deliver up to 4.4 times more performance, nearly 4 times more memory bandwidth and four times better energy efficiency versus its Trainium 2 chip.

During the session, US envoy Witkoff and Putin met to discuss the latest peace plan. While Putin indicated interest in negotiating on the latest US proposal, he rejected the European modifications to the plan.

In other news around the world, South Korea passed its 2026 budget, with AI related spending set to triple and focus on semiconductors and physical AI.

Rate cut odds have continued to trend higher, heading into the FOMC meeting next week.