Nasdaq 100 and S&P500: AMD–Meta Deal Lifts Tech as Software Stocks Stage Recovery

• AMD secured a multiyear AI infrastructure deal with Meta, intensifying competition with Nvidia in the AI chip market and driving semiconductor sector gains
• Software stocks rallied with Salesforce and ServiceNow both up 3%, though investors remain cautious awaiting new AI product announcements and potential disruption from competitors like Anthropic
• President Trump's potential increase of tariffs from 10% to 15%, combined with U.S.-Iran tensions, is keeping traders risk-averse and limiting upside despite the day's recovery from Monday's steep losses

Market Summary: Tech Stocks Rally on AMD-Meta Deal, Tariff Concerns Persist

Market Performance (Feb 24, 2026):

U.S. equities rebounded from Monday's steep losses, with the S&P 500 up 0.52%, Nasdaq Composite gaining 0.85%, and Dow Jones rising 353 points (+0.73%). The recovery was driven primarily by strength in semiconductor and software sectors.

Key Developments:

AMD-Meta Partnership: Advanced Micro Devices rallied significantly after announcing a multiyear AI infrastructure deal with Meta (formerly Facebook), intensifying competitive pressure on Nvidia's market dominance in the AI chip space.

Software Sector Strength: Salesforce and ServiceNow both surged 3% as investors anticipate new AI product announcements. Mizuho traders noted retail clients remain cautious, watching for developments from competitors like Anthropic that could disrupt legacy applications.

Earnings Highlights:

• Home Depot beat Q4 expectations, stock jumped 2.7%
• Keysight Technologies surged 15% on strong earnings
• Diamondback Energy declined 3% on lower-than-expected adjusted earnings
• ONEOK and Hims & Hers lowered full-year guidance

Sector Performance: Technology (+0.61%) and Consumer Discretionary (+0.64%) led gains, while Energy (-0.65%) and Financials (-0.79%) underperformed.

Market Headwinds: The 10% U.S. tariff remains a significant concern, with President Trump suggesting potential increases to 15%. U.S.-Iran tensions add additional geopolitical uncertainty. Analysts expect limited upside potential as tariff implementation appears imminent, with traders closely monitoring responses from China and Europe.

Outlook: Cautious buying continues, particularly in AI-related sectors, though tariff risks and geopolitical tensions keep sentiment subdued near-term.