Synopsis
Indian markets saw a strong rebound with technology stocks, particularly AI, leading the charge. Investors adopted a buy-the-dip strategy, ignoring concerns about the disruptive potential of AI. Major indexes posted solid gains, with semiconductor companies and companies like Advanced Micro Devices and Keysight Technologies posting significant gains.
AgenciesWall Street closed higher, led by technology stocks, as renewed enthusiasm for AI countered concerns about potential disruption.Wall Street closed higher on Tuesday, with technology stocks leading the way as renewed enthusiasm for artificial intelligence offset concerns about potential disruption caused by the nascent technology.
Speculation regarding the possible impact of AI on a wide variety of sectors has caused outsized moves in stocks and indexes in recent weeks, with Monday’s sharp decline the latest example of a recurring, recurring risk appetite amid these uncertainties.
“We’re in a period of time where the market is going to go through some uncertainty and today we’re seeing a bit of a slight buying move down,” said Matthew Keator, managing partner of the Keator Group, a wealth management firm in Lenox, Massachusetts. “We’re going to see some movement on a day-to-day basis, but overall there’s so much unknown about how AI ends up being additive or disruptive to some of these companies.”
All three major U.S. stock indexes posted strong gains during the session, with semiconductors outperforming.
The struggling S&P Software & Services index posted gains. Artificial intelligence lab Anthropic has announced several new plug-ins targeting areas such as investment banking and human resources, weeks after its previous releases fueled a sell-off in traditional software titles.
The company said its new plug-ins were developed jointly with partners including Thomson Reuters, owner of the Reuters news agency, Salesforce and FactSet.
Other sectors, ranging from commercial real estate to trucking and logistics, have seen sharp declines recently as developments in AI have raised concerns about industry-specific disruption.
“Anthropic has been busy announcing that their product is going to do all these new and wonderful things,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “The process is still in its early stages and acceptance and application of these tools is likely still some way off.” Monetary policymakers have weighed in on the potential impact of AI on the job market. Federal Reserve Governor Lisa Cook said the technology could lead to a possible increase in the unemployment rate, while Fed Governor Christopher Waller said he did not expect AI to disrupt the job market. Friday’s decision by the U.S. Supreme Court to strike down many of President Donald Trump’s tariffs, as well as Trump’s subsequent threat to implement a new round of taxes on goods imported from abroad, remains a source of lingering uncertainty. “There are still questions about the agreements already made,” Pavlik said. “What happens to these? Does this always happen?”
According to preliminary data, the S&P 500 gained 52.70 points, or 0.77%, to finish at 6,890.45 points, while the Nasdaq Composite gained 239.91 points, or 1.06%, to 22,867.18. THE Dow Jones Industrial Average rose 377.40 points, or 0.77%, to 49,181.46. Stocks in airlines and the travel and leisure sectors, which were battered Monday following a winter storm that paralyzed much of the Northeast, saw strong rebounds. Home Depot, another Dow component, rose after the home improvement retailer beat fourth-quarter estimates and maintained its annual guidance. Advanced microdevices announced it would sell up to $60 billion worth of AI chips to Meta Platforms over the next five years in a deal that would allow parent company Facebook to buy up to 10% of the chipmaker. AMD shares jumped on this news. Keysight Technologies jumped after the electronic equipment maker forecast second-quarter profit that beat Wall Street estimates.
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
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Most trending stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro stock price, NTPC stock price
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