NEW YORK — The U.S. stock market is rising on Tuesday after getting a reminder that the artificial-intelligence technology boom may also have an upside.
The S&P 500 rose 0.6%, a day after dropping 1%. The Dow Jones Industrial Average was up 353 points, or 0.7%, as of 11:30 a.m. Eastern time, and the Nasdaq composite was 0.9% higher.
Advanced Micro Devices helped lead the market and climbed 7.3% after announcing a multiyear deal where it will supply chips to help power Meta Platforms' AI ambitions. Under the agreement, Meta also got the right to buy up to 160 million shares of AMD stock for 1 cent each, depending in part on how many chips Meta ultimately buys.
It's a reminder of the excitement that built in recent years about the billions of dollars pouring into AI, which could remake the world and create a more productive economy.
Recently, though, investors have begun to focus more on the potential downsides of AI and how it could undercut profits for certain companies and industries or even make them obsolete. Industries as far flung as software, trucking logistics and financial services have seen investors suddenly and aggressively punish them for potentially being under threat.
IBM rose 3.9% Tuesday to recover a chunk of its 13.1% drop from the prior day, which was its worst since 2000.
The pain has also filtered out to the private-equity industry, with fears building that loans it made to software companies dependent on recurring revenue may have less of a chance of getting repaid. Blue Owl Capital fell 1.8% to bring its loss for the young year so far to 31.4%.
On Tuesday, Anthropic unveiled new AI tools that businesses can use with its Claude product. They covered everything from human-resources work to engineering to investment banking.
