US stocks regained some ground on Wednesday as investors returned to shares hit by a three-session selloff, with gains suggesting some appetite for bargains even as a global bond rout and escalating US-Iran tensions kept the broader market cautious, Reuters reported.The S&P 500 gained 35.35 points, or 0.46%, to finish at 7,666.82, according to preliminary data. The Nasdaq Composite added 120.07 points, or 0.46%, to 26,219.85, while the Dow Jones Industrial Average rose 299.37 points, or 0.56%, to 53,066.25.The rebound was led by smaller companies, with the Russell 2000 outperforming the major large-cap indexes. Airlines, gold and silver miners and regional banks were among the strongest-performing groups, while software and services stocks lagged as investors weighed the risk that artificial intelligence could disrupt parts of the industry, Reuters said.Semiconductor stocks also found some footing. The Philadelphia SE Semiconductor Index, which has driven much of this year's stock market gains, rose after losing nearly one-fourth of its value since late June. Broadcom was expected to report its second-quarter results after the market close.Nvidia, the chipmaker at the centre of the AI boom, ended higher, along with Micron and Qualcomm.For investors looking beyond the recent selloff, the earnings backdrop remains an important source of support. Lauren Cassidy, chief investment officer at Founders 100 ETF in Dallas, pointed to strong corporate results and the continued expansion of AI adoption."The war is continuing longer than anyone hoped, and when it ends, energy will cool and inflation won't be as much of an issue," Cassidy said. "At the same time, we just had a record earnings season, with wonderful fundamentals being driven by the accelerating adoption of AI.""AI adoption is still in the very early innings and it's just now accelerating," Cassidy added. "We could see exponential growth from here."Company-specific developments also helped lift sentiment. Dell surged after raising its annual profit and revenue forecasts, while Brown-Forman, the maker of Jack Daniel's, gained after quarterly profit topped expectations. Uber Technologies rose after the rideshare company announced plans to lay off about 10% of its staff, Reuters reported.Still, the recovery in equities came as the bond market remained a major source of pressure.The global bond selloff continued as investors grappled with inflation risks and rising government debt. The latest escalation in the Middle East added to those concerns by putting further pressure on energy prices.The United States and Iran ramped up attacks in their biggest exchange of airstrikes since July, weakening hopes of a return to negotiations and raising concerns that a prolonged conflict could keep inflation elevated. Higher energy costs could, in turn, put pressure on central banks to keep borrowing costs higher or even raise rates.US economic data offered another mixed signal. Payrolls processor ADP reported fewer-than-expected private-sector job additions in August, while new orders for core capital goods were revised lower, pointing to a possible cooling in corporate spending plans.Investors will now turn to Thursday's data on international trade, second-quarter labor costs and productivity, and services PMI for further clues on the health of the economy and the outlook for interest rates.(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)