Wall Street rebound, ASX set to rise
Stan Choe
Updated ,first published
U.S. stocks rose Tuesday after a reminder that the AI boom could also be on the upside.
The S&P 500 rose 0.8 percent, recovering nearly three-quarters of its sharp decline from the previous day. The Dow Jones gained 370 points, or 0.8 percent, while the Nasdaq composite gained 1 percent.
The Australian share market is poised to rise, with futures pointing to a gain of 63 points, or 0.7 per cent, at the open at 7.45am AEDT. The ASX was flat on Tuesday. The Australian dollar was trading at 70.57¢ at 8.28am AEDT. It’s a bumper day in the reporting season calendar, which includes Fortescue, Woolworths, WiseTech and Flight Centre.
Advanced Micro Devices helped lead the market, gaining 8.8 percent after announcing a multi-year deal in which it will supply chips to Meta Platforms to help power its AI ambitions. Under the deal, Meta also got the right to buy up to 160 million AMD shares for 1 cent each, depending in part on the number of chips Meta ultimately purchased. The series of transactions will be worth “double-digit billions” of dollars per gigawatt, according to AMD CEO Lisa Su, who declined to be more specific about the value of the transaction.
It’s reminiscent of the excitement in recent years about pouring billions of dollars into artificial intelligence that could remake the world and create a more productive economy.
It also helped mark a sharp turnaround from the day before, when concerns about the potential downsides of artificial intelligence rattled Wall Street, especially companies and industries that investors feared might become obsolete. Industries ranging from software to trucking to financial services have recently seen investors suddenly and aggressively punish them for being potentially under threat.
IBM rose 2.7 percent to offset some of its 13.1 percent decline, its worst decline since 2000.
This pain was also reflected in the private equity sector; Fears have increased that loans given to software companies based on steady income may have a lower chance of being repaid. Blue Owl Capital increased by 2.8 percent, narrowing its young year’s loss to 28.2 percent.
Anthropic on Tuesday introduced new tools that businesses can use with its Claude AI assistant. It covered everything from human resources work to engineering to investment banking.
The event suggested that fears of AI replacing existing software rather than simply making it easier to use may be overblown, according to Wedbush analyst Dan Ives. “While these use cases are impressive, the reality is that these new AI tools will not replace existing software ecosystems and data environments with these AI tools that are only as useful as the data they can access.”
One of the tools allows users to move data on financial markets from FactSet to Claude. Shares of FactSet Research Systems rose 5.9 percent, one of the biggest gains in the S&P 500, but are still down 30.6 percent for the year.
Other companies hit hard by concerns about AI competition also trimmed their losses for the year. Salesforce increased by 4.1 percent and AppLovin increased by 3.3 percent.
Outside of AI concerns, major US companies continued to report mostly better profits for the end of 2025 than analysts expected.
Keysight Technologies had the biggest gain in the S&P 500, rising 23.1 percent in the latest quarter after beating analysts’ profit and revenue expectations. It was also stated that revenue in this quarter could increase by approximately 30 percent compared to the previous year.
Home Depot also rose 2 percent after reporting stronger profits and revenue than analysts expected. This was true even amid what CEO Ted Decker called “ongoing consumer uncertainty.”
Overall, the S&P 500 rose 52.32 points to 6,890.07 points. The Dow Jones Industrial Average rose 370.44 to 49,174.50, and the Nasdaq composite index rose 236.41 to 22,863.68.
As for foreign stock markets, indices in Europe were mostly mixed with moderate movements.
Fluctuations were greater in Asia. While South Korea’s Kospi index rose 2.1 percent, Hong Kong’s Hang Seng index fell 1.8 percent. Shares in Shanghai rose 0.9 percent after reopening after a holiday lasting more than a week.
In the bond market, Treasury yields remained relatively stable following a report that said U.S. consumer confidence rose more than economists expected. The yield on the 10-year Treasury note remained at 4.03 percent late Monday.
AP, Bloomberg
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