Stock indexes, including the S&P 500 and Nasdaq, closed higher on Tuesday, rebounding from losses on Monday. Software and chipmakers saw gains, with AI startup Anthropic PBC’s positive news boosting sentiment. President Trump’s global tariffs went into effect, with a threat to increase rates. Geopolitical risks remain, with US-Iran nuclear talks ongoing.

US home prices rose in December, while the Richmond Fed manufacturing survey showed a decline in current conditions. Fed officials express optimism for more rate cuts. The focus this week is on corporate earnings and economic news, with President Trump’s State of the Union address tonight. Earnings season is wrapping up positively.

Software and chip stocks led gains on Tuesday, with Thomson Reuters and Salesforce among top performers. Advanced Micro Devices surged on a deal with Meta Platforms. Other gainers included Adobe Systems, Intel, and Qualcomm. Stocks like PayPal Holdings and BWX Technologies also saw positive movements.

Key players in the market, such as NVIDIA and Lowe’s, are set to release earnings reports this week. Interest rates fluctuated, with T-notes seeing a drop on Tuesday. European government bond yields were mixed, while Eurozone car registrations fell. The markets are keeping an eye on global economic developments and upcoming data releases.

Read more at Nasdaq: Stocks Settle Higher as AI Disruption Fears Ease