U.S. stocks rebounded Tuesday, following Monday's sharp selloff that was sparked by economic fears tied to a viral Citrini Research note warning about artificial intelligence's impact on the labor market.
Risk sentiment improved after Advanced Micro Devices Inc. (NASDAQ:AMD) secured a major infrastructure agreement worth $100 billion with Meta Platforms Inc. (NASDAQ:META).
Meta signed a five-year deal to purchase AMD chips for its data centers, starting with one gigawatt this year and scaling to six gigawatts. Shares of AMD surged 9%, fueling a broad-based rally in technology stocks.
By midday in New York, the S&P 500 gained 0.7%, the Dow Jones Industrial Average rose 0.8% and the Nasdaq 100 outperformed with a 1.2% advance. Small caps also moved higher.
The iShares Tech-Expanded Software Sector ETF (NYSE:IGV) rebounded 1.5% after Monday's 4.7% slump. Beaten-down software names Salesforce Inc. (NYSE:CRM) and Adobe Inc. (NASDAQ:ADBE) each climbed about 4%.
In travel, Booking Holdings Inc. (NASDAQ:BKNG), which had sold off sharply in recent weeks amid concerns AI could disrupt online travel agencies, bounced 5%.
Earnings-driven moves added to volatility. Home Depot Inc. (NYSE:HD) rose more than 3%, while Constellation Energy Inc. (NASDAQ:CEG) gained over 5%. Natural gas operator ONEOK Inc. (NYSE:OKE) lagged, falling 6.7%.
Sector performance reflected a risk-on tone. Technology led with a 1.7% gain, followed by consumer discretionary up 1.5% and industrials ahead 1%. Energy was the weakest group, down 0.6%, alongside health care off 0.3%.
In commodities, gold fell 1.8% to $5,140 per ounce and silver eased 0.7% to $87. Copper climbed 2.1% to nearly $6 a pound.
Treasury yields hovered near technical support. The 10-year yield gravitated around the 4% threshold, revisiting levels last seen during November's tech selloff.
In crypto markets, Bitcoin (CRYPTO: BTC) traded flat at $64,000, showing little reaction to the equity rebound.
Tuesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day % |
| Nasdaq 100 | 24,999.13 | 1.2% |
| Russell 2000 | 2,646.09 | 1.0% |
| Dow Jones | 49,183.03 | 0.8% |
| S&P 500 | 6,886.44 | 0.7% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) rose 0.7% to $632.14.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) moved 0.8% higher to $491.96.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 1.2% to $608.60.
- The iShares Russell 2000 ETF (NYSE:IWM) rose 1% to $262.99.
- The Technology Select Sector SPDR Fund (NYSE:XLK) outperformed, up 1.7%; the Energy Select Sector SPDR Fund (NYSE:XLE) lagged, down 0.6%.
Russell 1000’s Top 5 Gainers
| Stock Name | % Change |
|---|---|
| Clarivate Plc (NYSE:CLVT) | +29.46% |
| Keysight Technologies, Inc. (NYSE:KEYS) | +23.14% |
| Leonardo DRS, Inc. (NASDAQ:DRS) | +15.07% |
| Fermi Inc. (NASDAQ:FERMI) | +13.79% |
| Westlake Corporation (NYSE:WLK) | +12.16% |
Russell 1000’s Top 5 Losers
| Stock Name | % Change |
|---|---|
| Whirlpool Corporation (NYSE:WHR) | -11.32% |
| Armstrong World Industries, Inc. (NYSE:AWI) | -8.97% |
| Planet Fitness, Inc. (NYSE:PLNT) | -8.45% |
| Dillard's, Inc. (NYSE:DDS) | -8.10% |
| Expeditors International of Washington, Inc. (NYSE:EXPD) | -7.35% |
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