Closing Bell: AMD–Meta Deal Lifts Tech; Transports and Small Caps Lead as Volatility Cools

U.S. equities advanced as investors balanced fresh corporate headlines against lingering trade uncertainty. The VIX slipped back below 20, signaling a cooling in risk premiums after recent tariff-driven volatility. The Dow Jones Industrial Average rebounded following yesterday’s IBM-related weakness, while Transports and the Russell 2000 led the major indices, reflecting improving domestic growth sentiment. Software and AI-linked names also gained on new collaboration headlines across the ecosystem.

Three Things That Mattered Today

1) AMD–Meta partnership energizes AI complex

Shares of Advanced Micro Devices (AMD) jumped after news of a strategic supply and optimization agreement with Meta Platforms (META) focused on AI accelerators and data center expansion. The deal reinforced confidence that hyperscaler capex remains strong and diversified beyond a single chip supplier. The ripple effect lifted broader semiconductors and AI infrastructure names, strengthening sentiment ahead of Nvidia (NVDA) earnings tomorrow.

2) Markets digest weekend tariff headlines

Over the weekend, fresh tariff commentary created early-week caution, but markets appeared to treat the rhetoric as incremental rather than escalatory. Investors rotated selectively into companies perceived as less exposed to direct import costs. Trade-sensitive industrials stabilized, and domestic-focused small caps outperformed. The tone suggested positioning rather than panic, with the Dow bouncing back after yesterday’s IBM (IBM)-driven weakness.

3) Software rallies on collaboration momentum

Software stocks advanced broadly as collaboration and AI integration deals—particularly those tied to Anthropic partnerships—reignited enthusiasm around enterprise AI adoption. Investors bid up application and infrastructure software names on expectations of expanding AI monetization opportunities. The strength extended across cloud, data, and workflow platforms, reinforcing growth leadership.

Market Leadership and Sector Trends

Transports pushed higher, confirming domestic demand resilience, while the Russell 2000 outpaced large caps in a risk-on rotation. Technology and Software led on AI optimism, while defensives lagged. Financials were mixed, and energy traded more quietly as crude held steady.

Volatility, Rates, & Macro Backdrop

The VIX retreated below 20, underscoring a stabilization in sentiment. Treasury yields were little changed as investors awaited fresh supply and macro signals later this week. The macro environment remains sensitive to trade rhetoric but is currently supportive of equity momentum.

Tomorrow’s Economic Data

• 7:00 AM ET: MBA Mortgage Applications
• 9:35 AM ET: Fed’s Barkin Speaks
• 10:00 AM ET: New Home Sales
• 10:30 AM ET: EIA Petroleum Status Report
• 11:00 AM ET: Treasury Buyback Announcement, Fed’s Schmid Speaks, Survey of Business Uncertainty
• 1:00 PM ET: 5-Year Note Auction
• 1:20 PM ET: Fed’s Musalem Speaks
• 2:00 PM ET: Treasury Buyback Results

Tomorrow's Earnings

Premarket:

• TJX Companies (TJX)
• Lowe's (LOW)
• Diageo (DEO)
• Circle Internet Financial (CRCL)

Postmarket:

• Nvidia (NVDA)
• Salesforce (CRM)
• Synopsys (SNPS)
• Snowflake (SNOW)
• Zoom Video (ZM)
• Pure Storage (PSTG)
• Joby Aviation (JOBY)
• Urban Outfitters (URBN)