Stock market today: Live updates

The S&P 500 advanced 0.8%, while the Nasdaq Composite traded up 1.1%. The Dow Jones Industrial Average added 428 points, or 0.9%, supported by 2% rise in Home Depot shares after the company’s earnings beat expectations for the first time in a year. IBM shares, which tumbled in the prior trading day as a result of aforementioned AI fears, added to the Dow’s gains.

Shares of AMD jumped 9% after Meta announced a multiyear deal with the semiconductor company. The new partnership entails deploying up to 6 gigawatts of AMD’s graphics processing units for AI data centers. Meta will also invest in AMD through a performance-based warrant for up to 160 million shares of the chipmaker.

The move comes a week after Meta said it’s using millions of Nvidia’s chips in its data center buildout. Shares of the AI chip darling were last up 0.5%.

DocuSign was also a winner, increasing 3% after Anthropic said that its Claude Cowork is now able to be connected to DocuSign as well as organizations’ other existing tools like Google Drive and Gmail. The move offered some optimism to investors that AI might be able to complement software companies rather than take their place.

That extended to other areas of the software space. Shares of Salesforce — which has been working with Anthropic as well — and ServiceNow were up 4% and 2%, respectively. The iShares Expanded Tech-Software Sector ETF (IGV) was higher by 2%, though it still remains more than 30% below its 52-week high.

“It seemed to me that that the market itself was in a sell-first, ask-questions-later mentality. It has been for some time, and that’s why you saw some of even the enterprise software guys take a rather large hit,” Anshul Sharma, chief investment officer at Savvy Wealth, said to CNBC. He added that the day’s moves are “a classic relief rally after that selling.”

Sharma also said that he’s not quite convinced of the narrative that has been recently been circulating on Wall Street that AI is coming to replace a lot of enterprise software right away.

“It’s unbelievably risky from a liability perspective for very large companies to say, ‘Okay, we’re going to now move away from enterprise software — which has been tried and true, which has been tested and which aligns with our risk parameters — and then build it in house, and this is all going to happen in the next couple of months, next couple of quarters,'” he said. “The drawdown in software was a very immediate reaction.”

Major averages fell Monday on renewed AI disruption concerns. President Donald Trump’s threat to hike global tariffs to 15% and tensions between the U.S. and Iran also kept traders on edge. A global 10% U.S. tariff took effect Tuesday.