FX.co ★ US Stocks Enjoy Respite

US stock indices rebounded on Tuesday, partially recovering from the previous session’s losses as investors reassessed the potential disruption posed by AI advances in software development and automation. The S&P 500 rose 0.4%, while the Dow and the Nasdaq 100 each added 0.5%.

Software stocks saw a modest recovery after sharp declines earlier in the week, when worries that AI tools could displace traditional software service providers sparked broad-based selling in the sector. ServiceNow, Intuit, and Salesforce each gained roughly 3% on average. Payment companies also stabilized following similar displacement-driven selloffs, with Visa, Mastercard, and American Express advancing about 0.5%.

Meanwhile, the presidential administration was preparing a formal order to raise the new Section 122 tariffs to 15%, up from the current 10% rate. Elsewhere, AMD jumped 6% after Meta announced plans to invest billions of dollars in the company’s processors for its data centers.