Wall Street staged a classic "Turnaround Tuesday", rebounding sharply after Monday's sell-off triggered by Trump's new 15% tariffs and fears of AI disruption in the software sector.
The rebound by the numbers
Today's close shows a significant recovery:
- S&P 500: +0.68% to $6,884 — reclaimed the 6,800 support level
- Dow Jones: +410 points (+0.72%) to $49,155
- Nasdaq Composite: +1.1% to $22,838 — led by tech stocks
What drove the rebound
Several factors converged to reverse Monday's losses:
- AMD jumps 9%: Meta announced a massive deal worth up to $100 billion to deploy AMD GPUs in its AI data centers
- Software sector recovers: IBM rose 2.63%, Salesforce +4.07%, DocuSign +2.47% after Anthropic clarified Claude is an "orchestration layer," not a replacement
- Consumer confidence rises: the Conference Board index climbed to 91.2, beating the 87 estimate
- Home Depot beats expectations: shares rose 2% after reporting better-than-expected results for the first time in a year
Nvidia reports tomorrow: the week's key event
Nvidia (NVDA) releases Q4 FY2026 earnings Wednesday after market close. This is potentially the most important event of the week:
- Why it matters: Nvidia is the barometer of the AI revolution. Its results dictate sentiment across the entire tech sector
- What the market expects: strong revenue driven by AI data center chip demand
- The risk: after the Meta-AMD deal, investors will look for signals that Nvidia maintains its dominance
- Today's action: Nvidia rose +0.63% in anticipation
Should you buy on this rebound?
Arguments exist for both sides:
- Bull case: S&P 500 held 6,800 support, consumer confidence improved, and companies continue reporting solid results
- Bear case: 15% tariffs create uncertainty, volatility (VIX) remains elevated, and the rebound could be temporary if Nvidia disappoints tomorrow
- Prudent strategy: don't invest everything at once. Consider dollar-cost averaging over the coming weeks
What to watch this week
- Wednesday: Nvidia earnings (after market close)
- Thursday: PCE inflation data (the Fed's preferred indicator)
- Friday: personal income and consumer spending data
If Nvidia beats expectations and PCE shows contained inflation, markets could continue higher. If either disappoints, prepare for another pullback.
Disclaimer: This article is for informational and educational purposes only. It does not constitute personalized financial advice. Investment decisions are the sole responsibility of the reader.
