The AI love-hate trade roars as Meta-AMD $100 billion deal cheers traders’ spirits after doom spiral

U.S. stocks rose Tuesday after getting a reminder that the artificial-intelligence boom may also have an upside.

The S&P 500 climbed 0.8% and recovered nearly three-quarters of its sharp drop from the day before. The Dow Jones Industrial Average added 370 points, or 0.8%, and the Nasdaq composite gained 1%.

Advanced Micro Devices helped lead the market and rallied 8.8% after announcing a multiyear deal where it will supply chips to Meta Platforms to help power its AI ambitions.