Tech Stocks Power Gains After AI-Fueled Selloff: Markets Wrap
(Bloomberg) — A rally in technology firms spurred a rebound in stocks after a rout driven by fears about the disruptive impacts of artificial intelligence, with sentiment also buoyed by an improvement in consumer confidence.
Beaten-down software firms climbed, with the Nasdaq 100 up 1.1%. Advanced Micro Devices Inc. jumped about 9% on Meta Platforms Inc.’s plans to spend billions on its gear. Texas Instruments Inc. slid on concern about heavy capital spending. Short-dated bonds underperformed. Gold fell.
AI Disruption Means Risk for Some, Opportunities for Others
Weeks after Anthropic PBC sparked a market meltdown with the release of tools that raised questions about AI’s potential to render entire businesses obsolete, the startup said it’s expanding the reach of its Claude chatbot into new sectors.
It also highlighted how Claude integrates rather than displaces existing systems, noted Adam Crisafulli at Vital Knowledge.
“This ‘we’re here to help, not hurt’ message from Anthropic is helping to trigger a fairly healthy rebound rally in software,” he said.
Traders are also bracing for Nvidia Corp.’s results on Wednesday, expecting the chipmaker to trounce expectations. The report will follow its recent lackluster stock performance driven by investors rotating away from megacaps.
This week’s earnings will either “calm or exacerbate” AI fears, said David Laut at Kerux Financial. “We won’t have all of the answers this week, but worried investors are hungry for clarity,” he noted.
Before the chipmaker’s results, President Donald Trump will deliver the State of the Union address Tuesday evening, laying out his administration’s priorities for the year ahead.
The S&P 500 rose 0.8%. The yield on 10-year Treasuries was little changed at 4.03%. The dollar wavered.
“AI disruption risk is not new information, but the catastrophizing seems overdone,” said Andrew Tyler, who runs the Global Market Intelligence team at JPMorgan Chase & Co.
While some of the concerns about AI displacing certain sectors could prove justified at the company level, the broader market effect has been a healthy moderation of optimism, according to Anthony Saglimbene at Ameriprise.
“This shift in investor psychology, if lasting, could help lower the odds of valuations becoming unanchored with reality and leave a more constructive environment for the long-term health of the market,” he said.
The business cycle should limit equity drawdown risk despite AI disruption and concerns over geopolitical shocks, according to Goldman Sachs Group Inc. strategists including Andrea Ferrario and Christian Mueller-Glissmann.
“While somewhat elevated valuations do increase the risk of smaller corrections, our current optimistic macro baseline and broadly supportive market sentiment should limit drawdown risk,” they added.
Corporate Highlights:
The Pentagon warned Anthropic PBC that it would terminate the company’s military contracts on Friday if the artificial intelligence startup failed to meet government terms for use of its technology, according to people familiar with the matter. Warner Bros. Discovery Inc. is considering a new takeover proposal from Paramount Skydance Corp., the latest salvo in a battle for control of one of Hollywood’s most-famed studios. Home Depot Inc. reported a key sales metric that beat expectations in the latest quarter on steady demand, though the retailer cautioned that macroeconomic challenges remain. Novo Nordisk A/S plans to slash the US list prices for its blockbusters Wegovy and Ozempic next year as the drugmaker struggles to claw back a larger share of the obesity market. What Bloomberg Strategists say…
“For all the worries over the tech sector’s performance this year, one thing is clear: its earnings outlook is far superior to that of its peers, which will be key to drawing a line under share prices.”
—Kristine Aquino, Managing Editor, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.8% as of 4 p.m. New York time The Nasdaq 100 rose 1.1% The Dow Jones Industrial Average rose 0.8% The MSCI World Index rose 0.5% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1775 The British pound was little changed at $1.3498 The Japanese yen fell 0.8% to 155.88 per dollar Cryptocurrencies
Bitcoin fell 0.2% to $64,411.4 Ether fell 0.4% to $1,856.36 Bonds
The yield on 10-year Treasuries was little changed at 4.03% Germany’s 10-year yield was little changed at 2.71% Britain’s 10-year yield was little changed at 4.31% Commodities
West Texas Intermediate crude was little changed Spot gold fell 1.2% to $5,165.25 an ounce ©2026 Bloomberg L.P.
