Global markets turned positive on Tuesday (February 24) as Wall Street bounced back sharply after the previous day’s fall. Investors showed fresh confidence, especially in technology and software stocks.
The Dow Jones rose by 370 points, recovering nearly half of Monday’s losses. The S&P 500 gained 0.7 percent, while the Nasdaq jumped 1.1 percent. Out of 11 sectors in the S&P 500, nine closed in the green, showing broad-based strength across the market.
AI News Boosts Software Stocks
One key reason behind the rally was positive news from the artificial intelligence (AI) sector. At an event by AI company Anthropic, it was clarified that the company plans to work together with software firms instead of replacing them.
This eased fears that AI could hurt software companies. After this, Salesforce shares rose nearly 4 percent. Software-focused exchange traded funds (ETFs) gained 1–2 percent. DocuSign and LegalZoom climbed around 2 percent, while Thomson Reuters surged 11 percent.
Wedbush Securities said concerns about AI damaging software companies were likely exaggerated.
AMD Surges On Meta Partnership
The biggest action was seen in Advanced Micro Devices (AMD). Its shares jumped about 9 percent after announcing a major partnership with Meta. Meta will use AMD’s graphics processing units (GPUs) for its AI data centres and will also invest through performance-based warrants.
Last week, Meta had announced a similar partnership with Nvidia. Nvidia shares rose 0.7 percent ahead of its quarterly results, which are expected after market hours. Nvidia is currently the most shorted stock in the S&P 500, with around $50 billion in short bets.
Consumer Confidence Improves
US consumer confidence also supported the market. The index rose to 91.2 in February from 89 in January. People feel slightly more positive about jobs, income and the economy. However, inflation and rising prices remain concerns.
What’s Next?
Investors are now waiting for former US President Donald Trump’s “State of the Union” speech. Issues like affordability and tariffs may be discussed. Insurance and credit card stocks could also see movement.
For now, global markets are balancing hope with caution.
