Stock Market Today – Indexes Rebound, AMD Surges on Meta AI Deal

Major U.S. stock indexes rebounded sharply Tuesday, closing higher after Monday’s steep sell-off driven by concerns over AI disruption and uncertainty surrounding President Trump’s tariff policies. The Nasdaq gained 1.1%, while the Dow Jones Industrial Average and S&P 500 each rose 0.8%, recovering from Monday’s losses when the Dow sank more than 820 points.

The rebound came despite ongoing trade uncertainty. Last Friday, the Supreme Court struck down most of Trump’s tariffs, prompting him to announce a 10% global duty, later raised to 15%. A 10% tariff took effect Tuesday, with officials confirming the administration is preparing a formal order to raise it to 15%. Trump is expected to address Congress Tuesday night, which could provide clarity on the tariff outlook.

Tech stocks led the rally, with AMD surging nearly 9% after striking a landmark deal with Meta Platforms to supply 6 gigawatts of Instinct GPUs, reportedly worth more than $100 billion. Shares of Meta and Nvidia also closed higher, while most of the Magnificent Seven tech giants gained, except Alphabet. Other AI-linked firms that fell Monday on disruption fears IBM, Datadog, CrowdStrike, and AppLovin saw partial rebounds, with IBM climbing nearly 3%.

Beyond tech, earnings and corporate moves shaped trading. Home Depot rose 2% post-earnings, while Whirlpool plunged 14% after announcing $800 million in new shares to pay down debt. FedEx gained slightly after suing the U.S. government over tariffs. Meanwhile, Bitcoin traded around $64,500, Treasury yields held steady near 4.04%, gold futures slipped 0.7%, silver rose 1.1%, and crude oil edged down 0.2% to $66.20 a barrel. The U.S. dollar index ticked 0.1% higher to 97.81.

On a day when the S&P 500 posted solid gains, health care stocks stood out as underperformers. Of the 11 industries tracked by the benchmark index, the S&P 500 Health Care Sector was one of only two in the red Tuesday, slipping 0.5% just before the close. Energy was the other laggard, down fractionally.

Losses in health care were led by Molina Healthcare (MOH), Humana (HUM), and CVS (CVS), which declined 5%, 4%, and 4% respectively. The weakness highlights investor caution in the sector despite broader market strength.

By contrast, the S&P 500 Consumer Discretionary Sector was the day’s top performer, climbing about 1.6%. Gains in discretionary stocks helped lift overall sentiment, underscoring the divergence between sectors even as the broader market rebounded.

The mixed performance shows how sector-specific pressures can weigh on certain industries even during a positive trading session. For investors, the takeaway is that while the market trend was broadly higher, health care remains vulnerable to company-specific and regulatory risks.

Home Depot executives signaled little optimism for a housing rebound in 2026, noting that homeowners remain reluctant to give up the low mortgage rates they locked in during the pandemic. The housing market has been in a deep freeze since 2023, with affordability worsening due to elevated interest rates and persistent inflation, making down payments harder to save.

CEO Edward Decker explained on the company’s fourth-quarter earnings call that turnover remains depressed, keeping the market “in more of a repair than a replacement cycle.” With fewer people moving, discretionary spending on big-ticket home improvements is under pressure, as homeowners hesitate to invest heavily in properties they may leave in the near future.

Housing turnover fell to a 30-year low last year, according to Redfin. Rates that hovered around 4% before the pandemic and spiked to nearly 4.5% in 2021 have now been stuck below 2.9% for three years. Decker suggested the market may be bouncing along a bottom, but he does not expect conditions to worsen significantly.

The broader implication is that the housing sector remains constrained by affordability challenges and low turnover, limiting growth opportunities for home-improvement retailers. For investors, the message is clear: while repair-focused spending may hold steady, replacement and discretionary upgrades are likely to remain muted throughout 2026.

Traders are gearing up for Nvidia’s earnings report tomorrow, and not all of them are betting through traditional stock purchases. Prediction markets have opened up new ways to profit from high-profile events, allowing participants to wager on outcomes beyond share price direction. For example, a trader can bet directly on whether Nvidia will beat quarterly earnings and win even if the stock itself barely moves.

These markets have also introduced more unconventional wagers. One popular contract asks, “What will Nvidia say during their next earnings call?” As of Tuesday morning, bettors placed a 59% probability on the word “humanoid” being mentioned, compared with 54% for “tariff” and 49% for “Taiwan.” Such event-driven contracts appeal to retail traders thanks to their low buy-in costs, short time horizons, and the sense that research can give them an edge.

The mechanics are straightforward: prediction market contracts can be purchased for pennies, with a winning outcome paying out $1. For instance, buying 100 shares of a contract predicting Nvidia’s CEO Jensen Huang will say “humanoid” would cost $59, and if the word is indeed spoken, the trader nets a $41 profit.

This trend highlights how prediction markets are expanding beyond politics and sports into corporate earnings, offering traders new ways to speculate on both financial and linguistic outcomes. Nvidia’s call tomorrow could therefore move not only its stock price but also the fortunes of those betting on the words spoken during the event.

Planet Fitness (PLNT) delivered better-than-expected profit and revenue for its fiscal 2025 fourth quarter, but its fiscal 2026 guidance disappointed investors. Shares dropped 8.5% Tuesday afternoon after the company’s full-year outlook fell short of analyst expectations.

The Hampton, N.H.-based gym chain projects adjusted earnings per share to rise 9% 10% from fiscal 2025’s $3.07, reaching roughly $3.19 $3.22. Revenue is expected to increase about 9% from $1.3 billion to approximately $1.42 billion. Analysts surveyed by Visible Alpha had forecast higher numbers $3.54 EPS and $1.47 billion in revenue leaving investors underwhelmed.

Q4 results were stronger, with adjusted EPS of $0.83 and revenue up 10.5% year-over-year to $376.3 million, both topping estimates. However, the cautious full-year outlook overshadowed the quarterly beat, fueling the sell-off.

Including Tuesday’s decline, Planet Fitness shares have lost nearly a quarter of their value so far in 2026. The weak guidance highlights ongoing challenges in the fitness sector, where consumer spending remains pressured by inflation and discretionary cutbacks.

Nvidia’s earnings report tomorrow is the week’s most anticipated event, as it will be the last of the Magnificent 7 to release quarterly results. The outcome could determine whether the Big AI trade regains momentum or continues to sputter.

So far in 2026, the mega-cap tech leaders have struggled. Apple, Alphabet, Microsoft, Amazon, Meta, and Tesla are all in the red year-to-date, while Nvidia has managed only a modest gain of just over 2%. Their underperformance has weighed heavily on the market-cap weighted S&P 500 ETF (SPY), which is flat this year, compared with the equal-weighted Invesco S&P 500 ETF (RSP) that is up more than 5%.

The broader market, however, has shown resilience. AI-adjacent stocks, energy, and industrials have led gains, suggesting that the AI trade is broadening beyond software and digital platforms into physical and analog industries. Still, fears about AI disruption remain a drag, with recent reports warning of potential recessionary risks tied to rapid adoption.

For investors, Nvidia’s results will be pivotal. Strong earnings could reignite confidence in the Magnificent 7 and stabilize tech sentiment. Weak results, however, may reinforce concerns that AI-driven growth is slowing, leaving other sectors to carry the market.

President Donald Trump’s State of the Union address Tuesday night will be a chance to showcase his administration’s policies to a public increasingly frustrated with the economy. Delivered to a joint session of Congress at 9 p.m. Eastern Time, the speech will follow tradition by setting the policy agenda for the year ahead and highlighting accomplishments.

While Trump can point to bright spots in the economy, public opinion polls show growing dissatisfaction with inflation and the job market. A Washington Post-Ipsos survey last week found 57% of U.S. adults disapproved of Trump’s handling of the economy, up from 53% a year earlier. A RealClearPolitics average showed 56% disapproval versus 41% approval. Consumer surveys echo these results, with more pessimism about job prospects and unhappiness over persistent inflation.

Keysight Technologies (KEYS) led the S&P 500 higher Tuesday, with shares surging 20% after the company posted better-than-expected fiscal 2026 first-quarter results and issued a strong outlook for the current quarter.

The Santa Rosa, Calif.-based electronics testing equipment maker reported Q1 adjusted EPS of $2.17 on revenue of $1.60 billion, up 23% year-over-year. Both figures topped analyst expectations of $1.99 EPS and $1.54 billion in revenue.

Looking ahead, Keysight guided for adjusted EPS of $2.27 $2.33 and revenue of $1.69 $1.71 billion in the current quarter, well above analyst estimates of $1.92 EPS and $1.50 billion in revenue. CEO Satish Dhanasekaran credited investments made over the past three years for enabling the company to capitalize on momentum and deliver value.

The strong results and upbeat guidance positioned Keysight as the day’s standout performer, pacing the benchmark index and reinforcing investor confidence in the company’s growth trajectory.

Novo Nordisk (NVO) announced major U.S. list price reductions for its GLP-1 drugs, including Wegovy, Ozempic, and Rybelsus, effective January 1, 2027. The cuts about 50% for Wegovy and 35% for Ozempic aim to improve patient access by lowering out-of-pocket costs tied to list prices.

Despite the move, U.S.-listed shares of Novo Nordisk continued to fall, dropping 3.5% in premarket trading Tuesday after plunging 16% the day before to their lowest level in nearly five years. The sell-off followed disappointing trial results for its CagriSema obesity treatment, which showed less weight loss than Eli Lilly’s competing drug, Zepbound.

Novo Nordisk shares have lost 56% of their value over the past 12 months, underscoring investor concerns about competitive pressures and pipeline performance. Meanwhile, Eli Lilly shares slipped 1.5% before the bell but remain up 20% over the past year, highlighting the divergence between the two pharma giants.

The pricing cuts may ease affordability challenges for patients but have not reassured investors, who remain focused on Novo Nordisk’s ability to compete in the fast-growing obesity and diabetes treatment market.

Salesforce (CRM) is set to report earnings after Wednesday’s market close, with traders anticipating a sharp move in the stock. Options pricing suggests shares could swing up to 9% in either direction by the end of the week. From Monday’s close, that would mean a potential rebound above $194 or a drop to $162, its lowest level in three years.

The stock has already lost about a third of its value this year amid a broader rout in software names, fueled by concerns that new AI tools from Anthropic could disrupt the industry. Analysts at UBS and Oppenheimer recently cut their price targets to $200 and $275, respectively, citing muted growth expectations and cautious customer spending.

For Q4, Salesforce is expected to deliver adjusted EPS of $3.05 on a 12% year-over-year revenue jump to $11.18 billion, according to Visible Alpha estimates. Despite the slump, analysts remain largely bullish: of 20 tracked, 15 rate the stock a “buy,” with an average price target of $313 implying more than 75% upside from current levels.

The earnings release will be closely watched not only for financial results but also for management’s commentary on competition, AI disruption, and customer demand trends. Traders are positioning for volatility, making Salesforce one of the week’s most closely followed reports.

Advanced Micro Devices (AMD) shares surged 10% in premarket trading Tuesday after announcing a massive deal with Meta Platforms (META). The agreement will see AMD supply 6 gigawatts of Instinct GPUs to power Meta’s AI infrastructure, with shipments for the first gigawatt set to begin in the second half of 2026.

The Wall Street Journal reported the deal is worth more than $100 billion, underscoring the scale of Meta’s investment in AI computing power. As part of the transaction, AMD issued Meta a performance-based warrant for up to 160 million shares, structured to vest as GPU shipment milestones are achieved. With AMD currently holding just over 1.6 billion outstanding shares, Meta could end up owning close to 10% of the company.

Meta founder and CEO Mark Zuckerberg described the partnership as a long-term collaboration to deploy efficient inference compute and deliver “personal superintelligence.” He emphasized AMD’s role as a key partner in diversifying Meta’s compute strategy for years to come.

Despite strong quarterly results earlier this month, AMD shares had been down about 8% year-to-date before the announcement. The Meta deal reversed that trend, sparking investor enthusiasm. Meta shares edged lower before the bell, while AMD rival Nvidia (NVDA), set to report earnings Wednesday, slipped more than 1%.

U.S. markets bounced back strongly Tuesday after Monday’s sharp sell-off. The Dow Jones, S&P 500, and Nasdaq all closed higher, regaining ground lost to worries about AI disruption and uncertainty over President Trump’s tariff plans. The rebound reflects investor resilience despite ongoing volatility.

The standout story was AMD, which surged nearly 9% after striking a landmark deal with Meta Platforms to supply 6 gigawatts of Instinct GPUs. The Wall Street Journal valued the agreement at more than $100 billion, underscoring the scale of AI infrastructure investment. The deal also includes performance-based warrants that could give Meta up to 10% ownership of AMD, fueling investor enthusiasm.

Other tech giants also saw gains, with most of the Magnificent Seven finishing higher except Alphabet. Nvidia edged up slightly ahead of its highly anticipated earnings report Wednesday. Meanwhile, AI-linked firms that had plunged Monday IBM, Datadog, CrowdStrike, and AppLovin saw partial rebounds, signaling that investor sentiment remains highly sensitive to AI-related headlines.

Beyond tech, earnings reports and corporate moves shaped trading. Home Depot rose 2% post-earnings, Whirlpool plunged 14% on a new share issuance, and FedEx gained slightly after suing the U.S. government over tariffs. Commodities were mixed, with gold slipping, silver rising, and crude oil edging lower. Bitcoin hovered near $64,500, while Treasury yields and the dollar index held steady.