US stocks Rebounds as Tech Stocks Lead, AI Fears Ease

US stocks bounced back on Tuesday, with technology shares driving gains as renewed enthusiasm around AI helped offset recent disruption fears.

After Monday’s sharp selloff tied to AI uncertainty and tariff headlines, investors stepped in to buy the dip.

The Dow Jones Industrial Average rose 370.44 points, or 0.76%, to 49,174.50.
The S&P 500 gained 0.77% to 6,890.07.
The Nasdaq Composite advanced 1.05% to 22,863.68.

Semiconductors outperformed, while the previously battered S&P Software & Services index climbed 1.3%.

AI Optimism Returns

Recent weeks have seen sharp swings as investors debate whether AI will boost productivity or disrupt entire industries.

Tuesday’s rebound suggested that near-term AI adoption remains a powerful theme.

Artificial intelligence firm Anthropic announced new plug-ins targeting industries such as investment banking and human resources. The tools were developed with partners including: Thomson Reuters, Salesforce, FactSet

FactSet rose 5.9%, US-listed shares of Thomson Reuters jumped 11.5%, and Salesforce gained 4.1%, making it one of the Dow’s strongest performers.

Mega Chip Deal Boosts AMD

One of the session’s biggest movers was Advanced Micro Devices, which surged 8.8% after announcing a potential $60 billion AI chip supply deal with Meta Platforms over five years.

The agreement would allow Meta to purchase up to 10% of AMD. Meta shares edged up 0.3%.

The deal reinforced investor confidence that AI infrastructure spending remains strong despite volatility.

Corporate Movers

Home Depot rose 2.0% after beating fourth-quarter estimates and reaffirming its annual outlook.
Keysight Technologies jumped 23.1% after forecasting second-quarter profit above expectations.
Airline and travel stocks rebounded nearly 2.9% after being hit Monday by winter storm disruptions.

Among S&P sectors, technology and consumer discretionary led gains, while healthcare lagged.

Fed and Tariff Uncertainty Lingers

Federal Reserve officials weighed in on AI’s labor market impact. Governor Lisa Cook warned the technology could lift unemployment, while Governor Christopher Waller said he does not expect major disruption.

Meanwhile, uncertainty persists after the US Supreme Court struck down many of President Donald Trump’s tariffs. Trump has threatened new levies, keeping trade policy in focus.

Market Breadth and Volume

Advancers outnumbered decliners by more than 2-to-1 on both the NYSE and Nasdaq.

The S&P 500 recorded 46 new 52-week highs
Nasdaq posted 99 new highs
Total volume reached 17.06 billion shares, below the recent 20-day average

Tuesday’s session reflected a market still navigating AI-driven volatility. For now, strong corporate earnings, mega AI deals, and dip-buying activity are helping stabilise sentiment.

But with tariff policy uncertainty and questions about AI’s long-term economic impact still unresolved, investors should expect continued day-to-day swings.

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