US equities rebounded sharply on Tuesday, with the S&P 500 and Dow each gaining 0.8% and the Nasdaq advancing 1.1%, as markets staged a relief rally after Monday’s steep selloff. Sentiment improved amid easing worries that AI will rapidly displace established enterprise software: Salesforce climbed 4.1% and IBM recovered 2.7% after analysts reiterated the durability of legacy services.
AMD led the move higher, surging 8.8% after Meta unveiled a multiyear agreement to deploy 6 gigawatts of AMD graphics processing units across its AI data centers. DocuSign added 2.6% after Anthropic’s Claude Cowork was integrated with its platform, reinforcing the view of AI as a complement to, rather than a replacement for, existing business tools.
This renewed optimism helped investors look past concerns over a new 10% global tariff that came into force today, with the White House signaling plans to lift the rate to 15%. Home Depot also underpinned the broader advance, rising 2% after reporting its first earnings beat in a year.
