Stocks Bounce After AI-Fueled Slide as AMD Surges: Markets Wrap

Wall Street staged a tentative bounce a day after fears about the disruptive impacts of artificial intelligence sparked a slide that engulfed various industries. Bitcoin extended its February rout.

Stocks held mild gains after data showed consumer confidence ticked up. Beaten-down corners of the market saw signs of stabilization, with an ETF tracking software firms edging up. Advanced Micro Devices Inc. jumped on Meta Platforms Inc.'s plans to spend billions on the chipmaker's gear.

Traders are bracing for Nvidia Corp.'s results on Wednesday, expecting the giant chipmaker to trounce expectations. Its report will follow its recent lackluster share performance driven by investors rotating away from megacaps amid concerns over massive AI spending.

This week's earnings will either help to “calm or exacerbate” the market's fears about AI, said David Laut at Kerux Financial. “We won't have all of the answers this week, but worried investors are hungry for clarity.”

Meantime, Anthropic PBC is expanding the reach of its Claude chatbot into new sectors, weeks after the startup sparked a market meltdown with the release of tools that raised questions about AI's potential to render entire businesses obsolete.

The S&P 500 rose 0.2%. The yield on 10-year Treasuries was little changed at 4.04%. The dollar climbed.

Corporate Highlights:

• Home Depot Inc. reported a key sales metric that beat expectations in the latest quarter on steady demand, though the retailer cautioned that macroeconomic challenges remain.
• Intuit Inc. announced a multi-year partnership with Anthropic to bring custom AI agents to mid-market businesses and deliver personalized experiences for consumers and businesses.
• Warner Bros. Discovery Inc. is considering a new takeover proposal from Paramount Skydance Corp., the latest salvo in a battle for control of one of Hollywood's most-famed studios.
• Novo Nordisk A/S plans to slash the US list prices for its blockbusters Wegovy and Ozempic next year as the drugmaker struggles to claw back a larger share of the obesity market.
• Hims & Hers Health Inc. fell on uncertainty about whether the telehealth company can keep selling copycat weight-loss drugs that are mired in legal and regulatory risks.

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Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.2% as of 10:12 a.m. New York time
• The Nasdaq 100 rose 0.6%
• The Dow Jones Industrial Average rose 0.5%
• The Stoxx Europe 600 rose 0.4%
• The MSCI World Index rose 0.1%
• Bloomberg Magnificent 7 Total Return Index rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%
• The euro fell 0.1% to $1.1770
• The British pound was little changed at $1.3498
• The Japanese yen fell 0.8% to 155.95 per dollar

Cryptocurrencies

• Bitcoin fell 1.6% to $63,552.22
• Ether fell 1.3% to $1,838.41

Bonds

• The yield on 10-year Treasuries was little changed at 4.04%
• Germany's 10-year yield was little changed at 2.71%
• Britain's 10-year yield was little changed at 4.31%
• The yield on 2-year Treasuries advanced two basis points to 3.46%
• The yield on 30-year Treasuries declined one basis point to 4.69%

Commodities

• West Texas Intermediate crude was little changed
• Spot gold fell 1.8% to $5,135.32 an ounce

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