US stock indices were little changed on Tuesday, preserving most of the prior session’s pullback as investors continued to weigh the potential disruption from AI-driven advances in software development and automation. The S&P 500, the Dow, and the Nasdaq 100 hovered near the flatline.
Software stocks were volatile, extending weakness from earlier in the week amid worries that AI tools could displace traditional software services providers, prompting broad selling across the sector. Payment companies also declined further on renewed concerns that disruption could spread to conventional financial infrastructure, potentially accelerating stablecoin adoption and reducing transaction volumes in a softening labor market.
At the same time, the presidential administration was preparing a formal order to raise the new Section 122 tariffs to 15%, up from the current 10%. Finally, Nvidia and other chipmakers fell sharply ahead of the AI hardware leader’s earnings release later this week.
