Stocks bounce from Monday’s rout, led by AMD, software stocks

U.S. equities rose on Tuesday, led by gains in Advanced Micro Devices and software stocks, after a rough start to the final week of February’s trading.

The S&P 500 advanced 0.6%, while the Nasdaq Composite gained 0.9%. The Dow Jones Industrial Average added 413 points, or 0.8%.

Shares of AMD jumped 8% after Meta announced a multiyear deal with the semiconductor company. The new partnership entails deploying up to 6 gigawatts of AMD’s graphics processing units for artificial intelligence data centers. Meta will also invest in AMD through a performance-based warrant for up to 160 million shares of AMD.

The move comes a week after Meta said it’s using millions of Nvidia’s chips in its data center buildout. Shares of the AI chip darling were last marginally higher.

A rebound in software stocks offered a boost to the broader market. Salesforce and ServiceNow shares were up 5% and 3%, respectively. The iShares Expanded Tech-Software Sector ETF (IGV) was higher by 1%, though it still remains more than 30% below its 52-week high.

“No one wants to get cute ahead of another AI product reveal,” said Mizuho traders in a note. “Every new Anthropic headline has been treated as ‘incremental competition’ for existing software, whether that’s fair or not. So instead of trying to game the outcome, investors are choosing to step aside.”

Major averages fell Monday on renewed fears of AI disruptions to various industries. President Donald Trump’s threat to hike global tariffs to 15% and tensions between the U.S. and Iran also kept traders on edge. A global 10% U.S. tariff took effect Tuesday.