US sharemarkets rose on Tuesday as investors pared back fears that artificial intelligence will rapidly disrupt enterprise software and related industries. The S&P 500 climbed 0.77% to close at 6,890.07, the Nasdaq Composite advanced 1.04% to 22,863.68, and the Dow Jones Industrial Average added 370 points, or 0.76%, to 49,174.50.
The rebound followed heavy losses in the prior session, when AI disruption concerns and renewed tariff tensions weighed on sentiment. A 10% global US tariff came into effect Tuesday, though markets appeared to focus more on corporate developments within the technology sector.
AMD and software stocks lead recovery
Technology stocks led the gains, with Advanced Micro Devices surging 8.8% after announcing a multiyear agreement with Meta Platforms to deploy up to 6 gigawatts of graphics processing units for artificial intelligence data centres. Meta will also invest in AMD through a performance-based warrant covering up to 160 million shares. Nvidia added 0.7% as investors continued to monitor demand for AI chips ahead of its upcoming earnings release.
Software stocks also stabilised. Docusign rose more than 2% after new AI integrations were unveiled, while Salesforce gained 4% and ServiceNow added more than 1%. The iShares Expanded Tech-Software ETF rose nearly 2%, though it remains significantly below its 52-week high. IBM recovered 2.8% after sharp losses in the prior session.
Australian market outlook
Australian shares are set to open higher, tracking the recovery in US technology stocks. ASX 200 futures were up 61 points, or 0.7%, to 9,042.
Local investors face a busy session, with results due from Fortescue, Woolworths, WiseTech Global, Domino’s Pizza Enterprises and Tabcorp, among others. January consumer price index data and fourth-quarter construction work figures are scheduled for release at 11.30am AEDT.
