US stocks opened higher on Tuesday as investors steadied positions after an AI-led sell-off. Trading focused on where artificial intelligence may hurt revenue models and where it may lift chip demand. Market data showed modest gains across major indexes in early New York trading.

The S&P 500 rose 0.2% by 10:12 a.m. in New York. The NASDAQ 100 added 0.6%, while the Dow gained 0.5%. Bitcoin fell 1.6% to about $63,552, extending February weakness.

S&P 500 and NASDAQ Rebound as AI Disruption Fears Ease

Equities held small gains as traders weighed fresh corporate signals against a recent surge in AI “disruption” concerns. Investors continued to rotate between megacaps and industries seen as exposed to AI automation. The Bloomberg Magnificent 7 Total Return Index rose 0.4% in the session window.

European equities also moved higher in the same risk-on tone. The Stoxx Europe 600 rose 0.4%, and the MSCI World Index climbed 0.1%. The moves suggested a cautious bid rather than a broad risk appetite.

Rates stayed steady, which helped stocks avoid another volatility spike. The 10-year Treasury yield held near 4.04%, while the 2-year yield rose two basis points to about 3.46%. Market participants now treat Wednesday’s NVIDIA earnings as a key catalyst for the AI trade.

AMD Jumps on Meta AI Spending as NVIDIA Results Near

Chip demand returned to the center of the market narrative. Advanced Micro Devices shares surged more than 10% in premarket trading, leading early gains after Meta outlined plans to buy large volumes of AMD AI hardware as part of its buildout. Reportedly, the agreement could cover up to about $60 billion in AI chips, giving AMD a notable demand signal as enterprises expand AI capacity. 

Investors also watched NVIDIA for Wednesday’s results. Traders expect NVIDIA to beat estimates, but the report may shape sentiment on AI spending discipline. NVIDIA shares slipped in early trading as some investors reduced exposure ahead of earnings.

AI platform developments continued to drive sector rotations. Anthropic expanded its Claude offerings with tools aimed at automating work in fields like human resources, investment banking, and design. Those updates kept pressure on software valuations, even as they reinforced demand for compute infrastructure.

Software and Services Remain Volatile Despite Earnings Strength

Software stocks stayed in focus after a sharp drawdown in recent months. Investors have questioned whether AI-assisted coding and task automation will reduce demand for traditional enterprise software. This concern has driven heavy selling even when companies beat quarterly expectations.

Earnings due this week from major software firms will add detail on customer budgets and renewals. Workday reports after the close on Tuesday, while Salesforce, Snowflake, and others arrive later in the week. Investors will look for clear guidance on pricing power and AI product monetization.

Some strategists have pointed to cheaper valuations in the sector after the sell-off. Even so, uncertainty remains high because AI adoption can shift quickly. This uncertainty has kept traders sensitive to product demos, partnerships, and forward guidance.

Corporate Highlights 

• Advanced Micro Devices jumped after Meta outlined large AI-hardware spending plans.

• Meta Platforms slipped as investors assessed the cost of higher AI capex.

• International Business Machines rebounded after Monday’s steep, AI-driven drop.

• Intuit moved after announcing a multi-year AI partnership tied to Anthropic tools.

• Workday traded cautiously ahead of results due after the close.

• Snowflake stayed on watch for its upcoming earnings later this week.

• Coinbase stock fell as Bitcoin slipped back below $64,000.

• American Express weakened after renewed debate on AI risks to payments.

• Mastercard also declined on a similar “AI disruption” positioning.

• JPMorgan dipped after comments that flagged echoes of pre-2008 risk behavior.

• Blue Owl Capital remained under pressure as private-credit concerns resurfaced.

• Keysight Technologies surged after results beat estimates and guidance improved.

• Warner Bros. Discovery drew attention to takeover discussions tied to Paramount/Skydance.

Consumer Confidence Rises, and Tariff Policy Stays in View

Economic data offered a stabilizing signal. The Conference Board said its Consumer Confidence Index rose 2.2 points in February to 91.2, while the Present Situation Index dipped and the Expectations Index increased to 72.0. Dana M. Peterson, the group’s chief economist, said confidence ticked up as pessimism about the future eased, though inflation and price concerns remained prominent.

Trade policy also stayed in focus after the US Supreme Court struck down Trump’s global tariffs in a 6–3 ruling. Markets now track what comes next as the administration seeks other legal routes to rebuild tariff measures.

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