Buoyed Markets: The Semiconductor Surge and AI Regulation Rollback

U.S. stocks gained on Wednesday, driven by a surge in semiconductor stocks following reports that AI chip regulations would be relaxed. Despite choppy market activity, the PHLX semiconductor index saw significant gains. The Federal Reserve maintained interest rates, adding to economic uncertainty amidst ongoing trade tensions and tariff policies.

U.S. stock markets experienced a boost on Wednesday as semiconductor stocks soared, spurred by reports that the Trump administration plans to ease regulations on artificial intelligence chips. This development contributed to a late rally in the market despite an overall choppy trading session.

The Federal Reserve's decision to keep interest rates unchanged added uncertainty, with central bank leaders expressing concerns about the growing risks of inflation and unemployment amid Trump's tariff policies. This mixed economic sentiment affected trading until the semiconductor sector's surge.

The Dow Jones, S&P 500, and Nasdaq saw gains, aided by Disney's strong earnings report and ongoing discussions about U.S.-China trade relations. However, notable declines in Google's parent company pressed on the Nasdaq. Despite fluctuations, the financial markets showed remarkable resilience by the session's end.

(With inputs from agencies.)