U.S. stocks rose Tuesday after getting a reminder that the artificial-intelligence boom may also have an upside.
It’s a reminder of the excitement that built in recent years about the billions of dollars pouring into AI, which could remake the world and create a more productive economy.
The pain has also filtered out to the private-equity industry, with fears building that loans it made to software companies dependent on recurring revenue may have less of a chance of getting repaid. Blue Owl Capital rose 2.8% to trim its loss for the young year so far to 28.2%.
On Tuesday, Anthropic unveiled new tools for businesses to use with its Claude AI assistant. They covered everything from human-resources work to engineering to investment banking.
The event suggested that fears about AI supplanting existing software, rather than merely making it easier to use, may be overblown, according to Dan Ives, an analyst at Wedbush. “While these use cases are impressive, the reality is that these new AI tools will not rip and replace existing software ecosystems and data environments with these AI tools only as useful as the data it can reach.”
One of the tools allows users to bring data on financial markets from FactSet into Claude. FactSet Research Systems’ stock jumped 5.9% for one of the biggest gains in the S&P 500, though it’s still down 30.6% for the year so far.
Outside of AI worries, big U.S. companies continued to report mostly better profits for the end of 2025 than analysts expected.
All told, the S&P 500 rose 52.32 points to 6,890.07. The Dow Jones Industrial Average added 370.44 to 49,174.50, and the Nasdaq composite climbed 236.41 to 22,863.68.
In stock markets abroad, indexes were mixed in Europe amid mostly modest movements.
The swings were larger in Asia. South Korea’s Kospi jumped 2.1%, while Hong Kong’s Hang Seng dropped 1.8%. Stocks in Shanghai rose 0.9% after reopening following a holiday of more than a week.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
