US stock indices rebounded on Tuesday, partially recovering from the previous session’s losses as investors reassessed the potential disruption posed by AI advances in software development and automation. The S&P 500 rose 0.4%, while the Dow and the Nasdaq 100 each added 0.5%.
Software stocks saw a modest recovery after sharp declines earlier in the week, when worries that AI tools could displace traditional software service providers sparked broad-based selling in the sector. ServiceNow, Intuit, and Salesforce each gained roughly 3% on average. Payment companies also stabilized following similar displacement-driven selloffs, with Visa, Mastercard, and American Express advancing about 0.5%.
Meanwhile, the presidential administration was preparing a formal order to raise the new Section 122 tariffs to 15%, up from the current 10% rate. Elsewhere, AMD jumped 6% after Meta announced plans to invest billions of dollars in the company’s processors for its data centers.
