US stocks traded largely steady on Tuesday, a day after sharp losses driven by fears that artificial intelligence could disrupt businesses and industries, even as investors found some reassurance in fresh AI-related investment momentum.
The S&P 500 slipped 0.1%, after falling 1% in the previous session amid concerns over AI’s long-term economic impact. The Dow Jones Industrial Average was little changed, while the Nasdaq composite edged 0.2% lower, according to AP.
Markets showed signs of stabilising as investors balanced disruption fears with evidence of continued corporate spending on AI infrastructure. Advanced Micro Devices (AMD) helped support sentiment after announcing a multi-year agreement to supply chips powering Meta Platforms’ artificial-intelligence expansion.
AMD shares surged more than 10% in premarket trading following the announcement, which could eventually reach a value of around $100 million and includes Meta taking a 10% stake in the chipmaker. Meta shares slipped less than 1%. IBM recovered part of its previous day’s decline, when AI worries triggered its steepest drop since 2000.
Earlier, Wall Street futures had pointed to a rebound earlier in the session, with S&P 500 futures rising 0.1%, Dow futures gaining 0.2% and Nasdaq futures climbing 0.3% before trading began.
Investor caution intensified after a report by New York-based Citrini Research outlined a scenario where AI dominance could erode the “human-centric consumer economy,” warning that delayed policy responses may accelerate a deflationary cycle.
Attention is now turning to Nvidia’s earnings report due Wednesday, amid concerns that heavy spending by companies such as Alphabet and Amazon on AI chips may not generate sufficient long-term returns.
Home Depot shares rose 2.4% after the retailer beat Wall Street’s fourth-quarter expectations despite continued consumer caution linked to a housing slowdown.
European markets were largely flat in midday trade, with Germany’s DAX down 0.1%, Paris’ CAC 40 up 0.1%, and London’s FTSE 100 unchanged.
Asian markets delivered mixed performances. Japan’s Nikkei 225 climbed 0.9%, supported by gains in chip-related stocks including Advantest and Disco Corp.
Mainland Chinese markets advanced after reopening from a weeklong holiday, with the Shanghai Composite rising 0. 9%, while Hong Kong’s Hang Seng fell 1. 8% as investors booked profits.
South Korea’s Kospi surged 2.1% to record highs, led by semiconductor gains, with Samsung Electronics rising 3.6% and SK Hynix advancing 5.7%. Australia’s S&P/ASX 200 edged marginally lower, while Taiwan’s Taiex gained 2.8%. India’s Sensex declined 1.3%.
Investors are also watching President Donald Trump’s upcoming State of the Union address for clarity on US tariff policy following last week’s Supreme Court ruling against sweeping import taxes.
In commodities, US benchmark crude oil rose 11 cents to $66.42 per barrel, while Brent crude gained 7 cents to $71.18 amid concerns about potential US military action against Iran.
The US dollar strengthened to 155.86 Japanese yen from 154.66 yen, while the euro slipped to $1.1777. Bitcoin fell 4.3% to $63,180.
