Trim and cut the yellow squash and zucchini into 1/4-inch slices.

Cut the tomatoes into 1-inch cubes.

Heat the olive oil in a large skillet over medium-high heat.

Add the zucchini and yellow squash to the skillet.

Cook, stirring occasionally, until the squash and zucchini are cooked but still firm, about 5 minutes.

Add the chopped onions, garlic, and jalapeno peppers to the skillet.

Toss to blend the ingredients.

Add the fresh thyme, bay leaf, tomatoes, salt, and pepper to the skillet.

Stir to blend and cook, tossing occasionally, for about 5 minutes, or until the tomatoes soften slightly.

Add the chopped fresh basil to the skillet.

Stir to combine the basil with the other ingredients.

Remove the bay leaf from the skillet before serving.

Serve hot.