Wall Street Rebounds as AMD Leads Tech Recovery
U.S. stock markets rebounded on Tuesday after a sharp sell-off in the previous session. Gains in technology stocks, led by Advanced Micro Devices (NASDAQ: AMD), helped lift major indexes higher.
Investor sentiment had weakened on Monday due to rising global trade uncertainty and concerns about artificial intelligence disruption. However, markets stabilized as tech shares recovered.
At 11:15 ET, the S&P 500 rose 0.6% to 6,881.43, the Nasdaq Composite gained 1% to 22,855.80, and the Dow Jones Industrial Average advanced 0.8% to 49,202.06. The previous day, the Dow had fallen 1.7%, the Nasdaq dropped 1.1%, and the S&P 500 declined about 1%, turning negative for the year.
Monday’s losses followed a research note suggesting a hypothetical scenario in which AI-driven job displacement could hurt consumer spending, increase loan defaults, and potentially slow economic growth.
Trade Uncertainty Persists as Tariffs Take Effect
Markets remain focused on global trade developments after President Donald Trump’s new 10% global tariff came into effect at midnight on Tuesday. The tariff level was communicated by U.S. Customs and Border Protection following a recent Supreme Court ruling that struck down earlier “reciprocal” levies.
Although Trump had previously signaled a 15% tariff rate, reports indicate the White House is preparing a formal order to increase the rate from 10% to 15%.
Ongoing uncertainty surrounds the administration’s trade agreements with key partners. Trump warned countries not to “play games” with U.S. trade policy amid questions about the future of existing deals.
Adding to the legal complexity, FedEx (NYSE: FDX) filed a lawsuit seeking refunds for emergency tariffs paid over the past year. The Supreme Court decision left unclear what will happen to more than $160 billion in collected tariff revenue.
Home Depot Beats Expectations
Corporate earnings also supported markets. Home Depot (NYSE: HD) reported stronger-than-expected quarterly comparable sales, pushing its shares up more than 3%.
CEO Ted Decker said underlying demand remained relatively stable in 2025, excluding storm-related impacts. Higher prices contributed to results, with the average ticket increasing 2.4% year over year despite a 1.6% decline in transaction volume.
The company’s focus on professional contractors, supported by acquisitions such as SRS Distribution and GMS, helped offset weaker do-it-yourself demand.
Tech Sector Stabilizes Ahead of Nvidia Earnings
Technology stocks recovered following Monday’s volatility. AMD shares jumped about 7% after announcing an expanded AI infrastructure partnership with Meta Platforms (NASDAQ: META).
Software stocks also gained on new AI-related agreements, including a sharp move higher for Thomson Reuters.
Investors are now awaiting earnings from Nvidia (NASDAQ: NVDA), scheduled for Wednesday. As a key player in AI chips, Nvidia is widely seen as a barometer for broader artificial intelligence demand.
Oil Prices Hold Near Seven-Month Highs
In commodities, oil prices remained close to seven-month highs ahead of upcoming U.S.-Iran nuclear talks.
Brent crude traded near $71.11 per barrel, while U.S. West Texas Intermediate crude hovered around $66.19 per barrel. Both benchmarks are near levels last seen in early August 2025.
The United States and Iran are expected to hold a third round of nuclear negotiations in Geneva on Thursday, with geopolitical tensions continuing to influence energy markets.
