US OPEN: Wall Street rebounds after AMD-Meta deal

Wall Street is showing clear optimism this morning, with markets rising after yesterday’s declines. The Dow Jones is up 0.6 percent, the S&P 500 is up 0.2 percent, and the Nasdaq is up 0.3 percent.

Today's rebound is a reaction to yesterday's sharp drops, which were driven by concerns over the impact of artificial intelligence on the technology sector and uncertainty surrounding tariffs introduced by the Trump administration. The newly announced tariffs are causing further market disruption and have sparked opposition from several countries that previously signed trade agreements. These countries are demanding that the terms of the agreements be honored, and if not, they may terminate the deals, adding to global market uncertainty.

The spotlight remains on the semiconductor and artificial intelligence sector, where NVIDIA plays a key role. The company is considered a barometer of the industry’s bullish trend, as its GPU technologies are the foundation for data centers and AI systems worldwide. In the past, strong NVIDIA results have often fueled gains across the chip sector and the Nasdaq index, even amid macroeconomic and tariff-related risks.

Tomorrow’s release of NVIDIA’s quarterly results is the most important event of the week and could serve as a decisive test for the continuation of the bull market. If the results confirm strong demand for AI solutions and show that the company can maintain growth despite tariff and supply chain challenges, this could strengthen the rebound across the technology sector. If the report falls short of expectations, even today’s optimism may quickly give way to declines.

In short, Wall Street is rising today after sharp losses, indicating a short-term rebound, but key events and risks such as Trump’s new tariffs and NVIDIA’s upcoming results will determine the market’s direction in the coming days.

Source: xStation5

US500 (S&P 500) futures are rising today in reaction to positive news about AMD’s deal with Meta for AI chip supplies. The rebound after yesterday’s losses supports optimism in the technology sector, although the market remains in a wait-and-see mode ahead of NVIDIA’s quarterly results tomorrow. This situation highlights investors’ cautious approach as they look for confirmation of continued bullish momentum in a key market segment.

Source: xStation5

Company News:

AMD (AMD.US) signed a major agreement with Meta Platforms (META.US) to supply AI chips over the next five years with a total computing capacity of up to 6 gigawatts. Initial shipments, based on future AMD Instinct MI450 GPUs and EPYC processors, are expected in the second half of 2026. The partnership is highly valuable and could exceed $60 billion. The deal also allows Meta to acquire up to 10 percent of AMD shares in exchange for meeting purchase commitments and achieving agreed milestones in chip deliveries.

The announcement caused a significant rise in AMD shares, interpreted by the market as a signal of growing AI demand and confirmation of AMD’s competitive position against NVIDIA. The deal fits into a broader industry trend where companies are heavily investing in AI infrastructure and seeking alternative hardware suppliers, with AMD increasingly cementing its position in this segment.

Eli Lilly (LLY.US) shares came under pressure after competitor Novo Nordisk announced a price cut of up to 50 percent for GLP‑1 drugs in the US. This move intensifies competition in the diabetes and weight-loss drug segment, putting pressure on Eli Lilly and potentially impacting its revenues.

Whirlpool (WHR.US) announced a new share issue worth approximately $800 million. The funds will mainly be used to repay debt and invest in business development and automation. Following this decision, the company’s stock dropped, reflecting investor concerns over share dilution and the potential impact on valuation.

Home Depot (HD.US) shares are up over 2 percent during the session after releasing fourth-quarter results. The key same-store sales metric beat market expectations, indicating continued consumer demand, although the company warned of macroeconomic challenges.