The pivot into growth stocks from more defensive sectors such as health care and utilities came amid some recent indicators that the bear market may have bottomed.
On Tuesday, the Dow Jones Industrial Average surged more than 700 points, as a Bank of America survey suggested deteriorating sentiment could potentially set up a buying opportunity in the market.
"We view this bullish breadth day as a sign that the summer rebound for U.S. equities can continue," wrote Stephen Suttmeier, technical research strategist for Bank of America, in a note Wednesday.
Regardless, other market participants struck a more skeptical tone, as they awaited more clarity on the economic outlook.
"History says, but does not guarantee, that yesterday was more likely a bear market bounce than the start of a new bull market," said Sam Stovall, chief investment strategist at CFRA Research.
