LIVE MARKETS-US stocks rebound as investors gauge AI tools, tariff shifts ahead of Trump address

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US STOCKS BOUNCE AS INVESTORS GAUGE AI TOOLS, TARIFF SHIFTS AHEAD OF TRUMP ADDRESS

U.S. stocks rebounded on Tuesday, led by recovering technology shares as investors assessed Anthropic's announcement of new AI tools and weighed President Donald Trump's shifting stance on trade tariffs.

A majority of the S&P 500 .SPX sectors rose with Consumer Discretionary .SPLRCD, Industrials .SPLRCI, Tech .SPLRCT and Utilities .SPLRCU all gaining more than 1% each. Just Energy .SPNY and Health Care .SPXHC retreated.

Under the surface, software & services .SPLRCIS, which gained for the first time in four days, gold/silver miners .XAU, and chip stocks .SOX were among the outperformers on the day. Banks .SPXBK, .KRX dipped.

Among indexes scoring record closing highs were the Dow Jones Utility Average .DJU, the S&P 500 Utilities Index, the S&P 500 Materials Index .SPLRCM, the Nasdaq Biotech Index .NBI, and the Philadelphia semiconductor index .SOX.

Overall, the battle between growth .IGX and value .IVX pretty much ended in a stalemate on Tuesday. That said, growth is still on track for its worst month vs. value since March of last year.

Meanwhile, in a note, Barry B. Bannister, chief equity strategist at Stifel, is highlighting that the S&P 500's growth leadership has been struggling and value has been rebounding.

"Some interpret that as a sign of cyclical economic recovery, and it may be. But if this fade for Growth relative to Value accelerates and deepens, the history of 'secular' Value-led markets is one of a sharply declining P/E over time, weaker S&P 500 returns and ever greater shocks, often lasting for many years," writes Bannister.

He adds, "We expect a lower P/E offsets much 2026 EPS, leaving S&P 500 ~7,000 (and that benign view is low on the Street)."

In any event, President Trump is slated to deliver the traditional State of the Union address to Congress later in the day.

Here is a snapshot of where markets stood just shortly after 4 p.m. ET.

(Terence Gabriel)

EARLIER ON LIVE MARKETS:

HOW STOCKS HAVE PERFORMED 400 DAYS INTO TRUMP'S SECOND TERM CLICK HERE

TARIFF FIELD MAY BE MUDDIED, BUT UBS SEES RATES FALLING CLICK HERE

GETTING ALL YOUR DUCKS IN A ROW, OR IN THIS CASE, YOUR CROPS CLICK HERE

TWOFER TUESDAY: BRIGHTER CONSUMER CONFIDENCE, COOLER HOME PRICE GROWTH CLICK HERE

WALL STREET INDEXES RISE WITH AI IN FOCUS AGAIN CLICK HERE

S&P 500 CORRALLED BY MOVING AVERAGES, TRADERS AWAIT BREAKOUT CLICK HERE

THE CASE FOR BRITAIN'S SMALL- AND MID-CAPS CLICK HERE

ITALIAN DEBT THE AI WINNER CLICK HERE

THE HALO EFFECT: INVESTORS ROTATING TOWARD PHYSICAL ASSETS CLICK HERE

TRUMP MIGHT BECOME LESS AGGRESSIVE ON TARIFFS CLICK HERE

STOXX SOFT, BANKS WEIGH CLICK HERE

EUROPE BEFORE THE BELL: EDGING HIGHER CLICK HERE

TRUMP FUMES AGAINST THE WORLD AS HIS TARIFFS COME UP SHORT CLICK HERE