--- title: "Morning: US stocks rise, Dow Jones up 200 points, AMD up 6.6%" type: "News" locale: "en" url: "https://longbridge.com/en/news/276757576.md" description: "U.S. stocks rose in early trading on Tuesday, with the Dow Jones Industrial Average up 256.19 points and AMD's stock price soaring 6.6%. Investors are focused on Trump's upcoming State of the Union address, particularly regarding tariffs. Federal Reserve officials will also be speaking, with one calling for a pause in interest rate cuts. Concerns about AI led to a broad decline in major indices on Monday, and Trump's threat to raise global tariffs to 15% has intensified trade uncertainty" datetime: "2026-02-24T15:11:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276757576.md) - [en](https://longbridge.com/en/news/276757576.md) - [zh-HK](https://longbridge.com/zh-HK/news/276757576.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276757576.md) | [繁體中文](https://longbridge.com/zh-HK/news/276757576.md) # Morning: US stocks rise, Dow Jones up 200 points, AMD up 6.6% On the evening of February 24, Beijing time, U.S. stocks rose in early trading on Tuesday, attempting to rebound after major indices suffered heavy losses the previous day. U.S. President Trump will deliver a State of the Union address on Tuesday evening, and investors will pay attention to his statements regarding tariffs and other issues. Several Federal Reserve officials are scheduled to speak today, with one FOMC voting member calling for a pause in interest rate cuts. The Dow Jones Industrial Average rose by 256.19 points, an increase of 0.52%, closing at 49,060.25 points; the Nasdaq rose by 92.00 points, an increase of 0.41%, closing at 22,719.28 points; the S&P 500 index rose by 14.11 points, an increase of 0.21%, closing at 6,851.86 points. AMD's stock price surged by 6.6% after Meta announced a multi-year partnership with the company. This new collaboration plan will deploy up to 6 gigawatts of AMD graphics processing units for artificial intelligence data centers. Meta will also invest in AMD through performance-based warrants, with the option to purchase up to 160 million shares of AMD stock. The week prior, Meta stated that it had used millions of NVIDIA chips in its data center construction. Due to renewed market concerns about AI disrupting various industries, major indices fell across the board on Monday. President Trump threatened to raise global tariffs to 15%, and tensions between the U.S. and Iran kept traders on alert. This week, trade uncertainty has once again intensified and dominated global markets. Trump's new "unified (comprehensive) tariff rate" took effect on Tuesday, raising doubts about whether the terms of last year's trade agreement remain binding. Against this backdrop, the European Parliament decided to postpone the vote on last year's trade agreement between the U.S. and Europe for the second time. After the 10% tariffs imposed by the U.S. on global imports took effect on Tuesday, a senior U.S. government official reported that the White House is moving forward with formal measures to raise the rate to 15%. Reports indicate that the Trump administration is considering imposing new national security tariffs on six industries, following a Supreme Court ruling that invalidated many tariffs from the president's second term. Potential new tariffs could cover industries such as large batteries, cast iron and cast iron fittings, plastic pipes, industrial chemicals, power grids, and telecommunications equipment. These tariffs will be issued under Section 232 of the Trade Expansion Act of 1962, separate from other tariffs announced by Trump after the court ruling. The Dow fell more than 800 points on Monday, with IBM's stock price dragging down the index with a decline of about 13%. The tech-heavy Nasdaq Composite Index fell by 1.1%, while the S&P 500 index dropped by about 1%, turning negative for the year to date Software stocks such as Microsoft and CrowdStrike, as well as cybersecurity stocks and a range of financial sector stocks, saw significant declines in trading on Monday. Citrini Research released a report discussing hypothetical, AI-driven structural changes, further intensifying market fears regarding the "substitution effect" of AI on industries like software. Tony Sycamore, an analyst at IG Markets in Sydney, stated that the report "has gained significant traction" and "it indeed aligns with many concerns present in the market." This article, which circulated widely over the weekend, is one of several recent "thought pieces" discussing the long-term impacts of AI, touching on aspects such as employment, global growth, and even "the existence of humanity," causing unease among investors. Deutsche Bank strategist Jim Reid wrote when discussing a similar article: "This argument relies more on narrative and emotion than hard evidence. This does not mean it is necessarily wrong in the end, but... the proportion of 'emotional atmosphere' relative to 'substantive content' is undoubtedly high." The so-called "AI panic trading" has become a dominant theme in the U.S. stock market. The sell-off has spread from the software sector to insurance brokerage, private credit, cybersecurity, and even real estate services. The withdrawal from risk is just part of a broader structural shift "beneath the surface" of the U.S. market; after years of being led by tech stocks, the U.S. stock market has remained almost flat overall since 2026. As Tuesday approaches, traders will closely watch a key event hosted by AI company Anthropic, the company behind Claude. Anthropic is expected to unveil new products and demonstrate the latest features of Claude. The market's anticipation of this event—and the potential further disruption it may bring—is one of the reasons for the decline in the software sector on Monday. A Mizuho Securities trader remarked: "No one wants to be clever before another AI product launch. Fair or not, every new piece of news about Anthropic is seen as 'incremental competition' to existing software. Therefore, investors are not trying to predict the outcome but are choosing to temporarily step back and observe." Federal Reserve's Goolsbee Calls for Pause on Rate Cuts Chicago Federal Reserve Bank President Austan Goolsbee stated on Tuesday that it would be unwise to cut interest rates before there is more evidence that inflation is receding. Given that recent indicators show inflation is still above the Federal Reserve's 2% target, despite being far below its peak, Goolsbee pointed out that policymakers have previously suffered from "thinking inflation was transitory" and should not make the same mistake again. "I believe that in this situation, it would be unwise to significantly cut rates too early," he said during a speech at the National Association for Business Economics annual meeting in Washington, D.C. "People indicate that prices are one of their most pressing concerns. Let's keep an eye on that. Before we further cut rates to stimulate the economy, let's ensure that inflation is returning to the 2% level." The latest December inflation data shows that the core personal consumption expenditures price index (excluding volatile food and energy prices), a key indicator for the Federal Reserve, stands at 3%. This figure is up 0.2 percentage points from November, partly due to tariffs seen as temporary, but also due to potential pressures in the service sector and areas not directly affected by tariffs. Specifically, Goolsbee stated that stubbornly high housing inflation is not driven by tariffs and emphasized that the Federal Reserve needs to remain "vigilant." Goolsbee pointed out that a 3% inflation rate "is not good enough — nor is it the level that should be achieved when the Federal Reserve committed to a 2% target. For multiple reasons we are all too familiar with, stagnating at 3% is not a safe place." He previously indicated that he believes the Federal Reserve could lower interest rates later this year. As Goolsbee made these remarks, the market expects the Federal Open Market Committee (of which Goolsbee is a voting member this year) to maintain interest rates at least until June, and possibly until July. According to the FedWatch indicator from the Chicago Mercantile Exchange Group, financial traders estimate the probability of a rate cut in June at about 50%, and in July at about 71%. The Federal Reserve implemented three rate cuts of 25 basis points each in the second half of 2025. Federal Reserve Governor Christopher Waller, who has consistently advocated for rate cuts, also spoke at the National Association for Business Economics conference on Monday, adopting a more cautious stance. Although Waller stated that he believes policymakers should "ignore" the impact of tariffs, he noted that recent data suggests the labor market may be in better shape than previously indicated, reducing the necessity for further rate cuts. If employment conditions continue to improve, it will further weaken the rationale for rate cuts; however, he admitted that he does not believe the January non-farm payroll data is "more noise than signal." 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