AI's Ripple Effect: Stock Markets Steady Amid Technology Boom

The US stock market steadied, buoyed by a new chip supply deal between AMD and Meta Platforms amid AI technology's mixed effects. While some industries face AI threats, other companies reported better-than-expected profits, boosting investor confidence. Meanwhile, international markets experienced varied movements, and Treasury yields rose with improved consumer confidence.

The US stock market remained stable on Tuesday, reversing Monday's downturn, following optimism over advancements in artificial intelligence technology. The S&P 500 inched up by 0.1%, while the Dow Jones Industrial Average rose 219 points at the start of trading. The Nasdaq also saw a 0.2% increase.

Advanced Micro Devices (AMD) surged 7% after announcing a multiyear chip supply deal with Meta Platforms, which included stock options, signaling new momentum in AI investments. Despite growing concerns about AI's impact on various sectors, some investors are finding renewed confidence in tech stocks.

Internationally, European indexes rose slightly, while Asia saw mixed results. South Korea's Kospi jumped 2.1%, a stark contrast to the Hang Seng's 1.8% drop in Hong Kong. Bond yields edged up as US consumer confidence surpassed economist predictions, creating an optimistic economic outlook.

(With inputs from agencies.)