United States equities rebounded on Tuesday (Wednesday AEDT) as technology and software shares recovered from a sharp AI-driven sell-off.
The Dow Jones Industrial Average advanced 370.4 points or 0.8% to close at 49,174.5, the S&P 500 rose 52.3 points or 0.8% to 6,890.1, while the Nasdaq Composite added 236.4 points or 1% to 22,863.7.
Investor sentiment improved after several sessions of volatility linked to concerns that rapid advances in artificial intelligence could disrupt established software and technology firms.
Chipmaker Advanced Micro Devices was among the standout performers, surging 8.8% after announcing a multiyear agreement with Meta Platforms.
Under the partnership, Meta will deploy up to six gigawatts of AMD graphics processing units in artificial intelligence data centres and will also take a performance-based warrant for up to 160 million AMD shares.
The agreement follows Meta’s recent disclosure that it is using millions of chips from Nvidia in its data centre expansion. Nvidia shares finished 0.7% higher.
Software stocks also found renewed support after Anthropic unveiled a series of new plug-ins aimed at industries including investment banking and human resources.
The announcements helped ease investor fears that generative AI would rapidly displace traditional software providers. Instead, the updates suggested that AI tools may complement rather than replace established platforms.
DocuSign rose 2.6% after Anthropic said its Claude Cowork product can now integrate with DocuSign as well as tools such as Google Drive and Gmail. Salesforce shares gained 4.1%, while ServiceNow added 1.7%.
Monday’s session had been marked by broad declines amid renewed concerns about AI disruption, alongside geopolitical tensions and trade policy uncertainty.
President Donald Trump reiterated plans to lift global tariffs to 15%, while a 10% U.S. tariff on a broad range of imports came into force on Tuesday.
Among reporting companies, Home Depot finished 2% higher after reporting fourth-quarter earnings ahead of estimates and maintaining its full-year outlook, marking its first earnings beat in a year.
In corporate earnings, Keysight Technologies surged 23.1% after forecasting second-quarter profit above market expectations.
In fixed income markets, U.S. Treasury yields edged higher. The 10-year yield rose 0.2% to 4.037%, while the two-year yield increased 0.7% to 3.465%.
