US stocks today: Wall Street steadies after AI sell-off as chip deal lifts sentiment
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US stocks today: Wall Street steadies after AI sell-off as chip deal lifts sentiment

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 AIโ€™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 Platformsโ€™ 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 dayโ€™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 โ€œhuman-centric consumer economy,โ€ warning that delayed policy responses may accelerate a deflationary cycle.Attention is now turning to Nvidiaโ€™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 Streetโ€™s fourth-quarter expectations despite continued consumer caution linked to a housing slowdown.European markets were largely flat in midday trade, with Germanyโ€™s DAX down 0.1%, Parisโ€™ CAC 40 up 0.1%, and Londonโ€™s FTSE 100 unchanged.Asian markets delivered mixed performances. Japanโ€™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 Kongโ€™s Hang Seng fell 1.8% as investors booked profits.South Koreaโ€™s Kospi surged 2.1% to record highs, led by semiconductor gains, with Samsung Electronics rising 3.6% and SK Hynix advancing 5.7%. Australiaโ€™s S&P/ASX 200 edged marginally lower, while Taiwanโ€™s Taiex gained 2.8%. Indiaโ€™s Sensex declined 1.3%.Investors are also watching President Donald Trumpโ€™s upcoming State of the Union address for clarity on US tariff policy following last weekโ€™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.

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