Nasdaq rises as benchmark tries to rebound from worst day since 2022: Live updates

The Nasdaq Composite advanced Thursday, as the tech-heavy benchmark looked rebound from its worst session since 2022.

The index rose 0.3%, as did the S&P 500. The Dow Jones Industrial Average also climbed 0.3%.

These moves come after the Nasdaq tumbled 2.8% in its worst day since December 2022 on Wednesday, closing below 18,000 for the first time since July 1.

Wall Street has been dumping shares of this year's artificial intelligence plays as the growing likelihood of a September rate cut bolstered optimism in the broader market. That's particularly helped small-cap and more cyclical names, which are seen as beneficiaries a lower borrowing costs.

This explains why the small-cap focused Russell 2000 has jumped more than 9% in the last five trading days. The index flickered around flat on Thursday after snapping a five-day win streak in the prior session.

By comparison, the Nasdaq has slipped more than 3% in the same period. Wednesday also marked the first session since 2001 where the Nasdaq posted a loss exceeding 2.5%, while the blue-chip Dow registered a gain.

"Obviously, Fed easing rates is going to be good for small businesses," said Charlie Ripley, senior investment strategist at Allianz Investment Management. Meanwhile, there's "some prudence and profit taking with the tech trade that's been so profitable this year."

In corporate news, Discover Financial popped 2% after its second-quarter results topped expectations. Beyond Meat tumbled about 9.5% after The Wall Street Journal reported, citing people familiar, that the meat substitute company is meeting with bondholders to begin discussions about restructuring its balance sheet.

The rout in semiconductor stocks Wednesday was likely driven by investor positioning, according