NEW YORK (AP) — The U.S. stock market is holding a bit steadier on Tuesday after getting a reminder that the artificial-intelligence technology boom may also have an upside.
The S&P 500 slipped 0.2% in early trading, a day after sliding 1%. The Dow Jones Industrial Average was up 123 points, or 0.3%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.
Advanced Micro Devices helped lead the market and rose 6.8% after announcing a multi-year deal where it will supply chips to help power Meta Platforms’ AI ambitions. Under the deal, Meta also got the right to buy up to 160 million shares of AMD stock for 1 cent each, depending in part on how many chips Meta ultimately buys.
It’s a reminder of the excitement that built in recent years about the billions of dollars pouring into AI, which could remake the world and create a more productive economy.
Recently, though, investors have begun to focus more on the potential downsides of AI and how certain companies and industries could see their profits undercut by an AI revolution. Industries as far flung as software, trucking logistics and legal services have seen investors suddenly and aggressively punish them for potentially being under threat.
IBM rose 2.1% Tuesday to recover a sliver of its 13.1% drop from the prior day, which was its worst since 2000.
The pain has also filtered out to the private-equity industry, with fears building that loans it made to software companies dependent on recurring revenue may have less of a chance of getting repaid. Blue Owl Capital fell 1.2% to bring its loss for the year so far to 31%.
Outside of AI worries, big U.S. companies continue to report mostly better profits for the end of 2025 than analysts expected.
Home Depot rose 3.8% after delivering stronger profit and revenue than analysts expected, even with what CEO Ted Decker called “ongoing consumer uncertainty.”
Keysight Technologies rallied 18.1% after likewise topping analysts’ expectations for profit and revenue in the latest quarter. It also said revenue in the current quarter could rise by roughly 30% from a year earlier.
In stock markets abroad, indexes were mixed amid mostly modest moves in Europe.
In Asia, the swings were larger. South Korea’s Kospi jumped 2.1%, while Hong Kong’s Hang Seng dropped 1.8%. Stocks in Shanghai rose 0.9% after reopening following a holiday of more than a week.
In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury remained at 4.03%, where it was late Monday.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
