U.S. stocks rose Tuesday after a major AMD-Meta deal and positive AI developments eased fears of widespread job losses.

U.S. stocks rebounded Tuesday, with the S&P 500, Dow, and Nasdaq all rising about 0.8% to 1%, recovering from Monday’s steep losses driven by fears of AI disrupting industries like software and finance. A major multiyear deal between AMD and Meta Platforms, under which Meta will buy AI chips and gain the right to acquire up to 160 million AMD shares at 1 cent each, boosted AMD by 8.8% and helped restore investor confidence. Anthropic’s announcement of new AI tools for business applications, including integration with FactSet data, signaled AI could enhance rather than replace existing systems, lifting related stocks. Strong earnings from Keysight Technologies, which surged 23%, and other firms also supported the rally. Global markets were mixed, with South Korea up 2.1% and Hong Kong down 1.8%, while Treasury yields held steady at 4.03%.