Wall Street Today: DJIA, S&P 500, Nasdaq Comp Rise on AMD-META Deal, Plus IBM and CRM Gains

The Dow-30, S&P 500 and Nasdaq Composite rose Tuesday as AMD soared on a chip deal with Meta, while techs like Salesforce and IBM stabilized as investors decided a Monday sell-off linked to AI-disruption fears went too far.

The $Nasdaq Composite Index (.IXIC.US)$ gained 236.41 points (1.1%) to a 22,863.68 close, while the $Dow Jones Industrial Average (.DJI.US)$ added 370.44 ticks (0.8%) to 49,174.50 and the $S&P 500 Index (.SPX.US)$ rose 52.32 points (0.8%) to 6,890.07.

Macro

All three indexes rebounded from 1%+ losses seen on Monday when $IBM Corp (IBM.US)$, $CrowdStrike (CRWD.US)$, $American Express (AXP.US)$, $Salesforce (CRM.US)$, $DoorDash (DASH.US)$ and other large stocks fell on AI-related worries.

Privately held Anthropic's roll-out of new features in its Claude AI system convinced Wall Street on Monday that the tool will upend many firms' existing businesses.

However, several affected stocks partially rebounded Tuesday as some investors decided the sell-off went too far. For instance, IBM's 13.1% decline on Monday had represented its worst single-session loss in nearly 26 years.

Meanwhile, Anthropic announced new deals Tuesday that will allow apps from $Salesforce (CRM.US)$, $Intuit (INTU.US)$, $DocuSign (DOCU.US)$ and other software firms to integrate their products with Anthropic's new Claude Cowork AI system.

That added to better sentiment for several recently struggling software stocks.

All in, stocks to partly or fully rebound included $Salesforce (CRM.US)$ (4.1% better), $IBM Corp (IBM.US)$ (up 2.7%) and $DocuSign (DOCU.US)$ (2.6% firmer).

Other tech stocks to gain ground included $CoreWeave (CRWV.US)$ (9.3% better), $Taiwan Semiconductor (TSM.US)$ (4.3% firmer) and $Oracle (ORCL.US)$ (which rose 3.4%).

Adding to Tuesday's improved tone, $Advanced Micro Devices (AMD.US)$ rallied 8.8% on word that $Meta Platforms (META.US)$ will buy up to 6 gigawatts of AMD graphics processing units for its AI data centers.

Meta also plans to purchase a warrant for up to 160 million AMD shares as part of the deal.

Rival semiconductor firm $Intel (INTC.US)$added 5.7% partly in sympathy and partly on news that it invested in a $350 million funding round for AI chip startup SambaNova Systems, which is developing the SN50 advanced chip.

Elsewhere in the markets, gold and silver traded mixed in a "flight-to-safety" move amid uncertainty about U.S. President Donald Trump's latest tariff plans and ongoing U.S.-Iranian military tensions.

$Silver Futures (MAY6) (SImain.US)$ rose 1% to $87.435 an ounce at last check on the New York Comex, while $Gold Futures (JUN6) (GCmain.US)$ eased 0.7% to $5,186.70 per ounce. However, gold contracts had been up 0.8% earlier in the day.

Similarly, major cryptocurrencies traded mixed. $Bitcoin (BTC.CC)$ was 0.04% higher at $64,268.47 as of shortly after 4 p.m. New York time, while $Solana (SOL.CC)$added 0.2% to $78.39.

However, $Ethereum (ETH.CC)$ was down 0.2% at $1,851.60, while $Ripple (XRP.CC)$shed 0.4% to $1.35.

Moo-vers

The "Magnificent Seven" stocks took their cue from the broad-market indexes and ended Tuesday's session mostly higher.

$Tesla (TSLA.US)$led the pack with a 2.4% gain, followed by $Apple (AAPL.US)$(up 2.2%), $Amazon (AMZN.US)$ (1.6% stronger), $Microsoft (MSFT.US)$ (1.2% better), $NVIDIA (NVDA.US)$ (0.7% firmer) and $Meta Platforms (META.US)$ (which added 0.3%).

Only $Alphabet-A (GOOGL.US)$ fell among Mag-7 names, easing 0.2%.

Beyond the Mag-7, Tuesday's noteworthy percentage decliners included:

-- $Kratos Defense & Security Solutions (KTOS.US)$, down 3.9%. The drone firm fell as Q1 EBITDA guidance fell short of analyst forecasts. That outweighed better-than-expected EBITDA guidance for 2026 as a whole, as well as a Q4 earnings beat.

-- $Novo-Nordisk A/S (NVO.US)$, down 2.6%. The pharma firm fell on news that it plans to cut U.S. list prices for its popular Wegovy and Ozempic diet drugs by up to 50% in 2027. Rival $Eli Lilly and Co (LLY.US)$ lost 1.6% in sympathy.

Conversely, Tuesday's major percentage gainers included:

-- $Vir Biotechnology (VIR.US)$, which soared 27.7%. The biotech rallied on a deal with $Astellas Pharma (ADR) (ALPMY.US)$ to jointly develop VIR's experimental prostate-cancer treatment, which had well-received Phase 1 results.

-- $Figma Inc (FIG.US)$, up 10.8%. The graphics-software firm rose on news that mega-investor Cathie Wood has increased holdings of the stock for her Ark Invest ETFs.

-- Select data-center stocks, which rose on Big Techs' rebound. Gainers included $IREN Ltd (IREN.US)$ (up 7.3%) and $Applied Digital (APLD.US)$ (2.2% better).

-- $PayPal (PYPL.US)$, up 6.7%. PYPL rose for a second day following a Bloomberg News report of possible takeover interest in the fintech.

Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors' financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal.

979K Views