Stocks had a solid session today, with the major averages closing higher across the board amid increasingly broad participation throughout the session. The S&P 500 (+0.8%) and Nasdaq Composite (+1.0%) reclaimed the bulk of yesterday's weakness, with the S&P 500 trading above its 50-day moving average (6,895.59), but closing just under the technical level. Meanwhile, the DJIA (+0.8%) posted a similar gain, though it only amounted to just under half of yesterday's losses. 

Software stocks saw some buying interest after a particularly weak session yesterday, with the iShares GS Software ETF (+1.9%) clawing back some of its nearly 5.0% decline. While there was certainly an element of bargain hunting in today's trade, Anthropic's announcement of new partnerships in its Claude Cowork space helped quell some of the broader fears of AI disruption. FactSet (FDS 201.49, +11.23, +5.90%) was among the names listed and finished as one of the top-performing names in the financials sector (+0.5%), which had previously slid 3.3% on Monday.

Financial services companies and asset managers were among the outperformers after particular weakness yesterday, while PayPal (PYPL 47.01, +2.96, +6.73%) surged after Bloomberg reported that Stripe Inc. is interested in acquiring the company. 

Unsurprisingly, the information technology sector (+1.2%) was among today's top performers amid the bounce in software stocks. The sector was also supported by solid gains across chipmakers, sending the PHLX Semiconductor Index 1.5% higher. Advanced Micro Devices (AMD 213.84, +17.24, +8.77%) was a standout after announcing a landmark multi-year agreement to deploy up to 6 gigawatts of custom MI450/Helios AI systems with Meta Platforms (META 639.30, +2.05, +0.32%). 

Meanwhile, the consumer discretionary sector (+1.6%) also rebounded nicely from yesterday's lows, notching the widest gain today. Travel names such as Expedia Group (EXPE 198.12, +9.61, +5.10%) and Booking Holdings (BKNG 4068.56, +197.73, +5.11%) were among the top performers, while stocks that were particularly affected by President Trump's implementation of a 10% Section 122 tariff rate also finished higher, including Williams-Sonoma (WSM 209.00, +7.12, +3.53%) and NIKE (NKE 64.09, +1.00, +1.59%). 

Home Depot (HD 384.48, +7.49, +1.99%) notched a solid gain after posting an EPS beat following three consecutive misses.

The sector also benefitted from strong mega-cap leadership from Tesla (TSLA 409.38, +9.55, +2.39%) and Amazon (AMZN 208.56, +3.29, +1.60%) amid a strong day for the market's weightiest names that saw the Vanguard Mega Cap Growth ETF finish 1.1% higher. 

The industrials sector (+1.2%) notched a solid finish as well, while broadening strength throughout the session saw the defensive utilities (+1.1%) and consumer staples (+0.7%) sectors finish higher despite a weaker start. 

Meanwhile, the health care sector (-0.5%) finished with the widest loss, with particular weakness across managed care names such as Molina Healthcare (MOH 148.31, -7.90, -5.06%) and Humana (HUM 174.64, -6.52, -3.60%).

Only the energy sector (-0.1%) would also finish slightly lower as crude oil futures settled today's session $0.64 lower (-1.0%) at $65.66 per barrel.

Outside of the S&P 500, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.0%) outperformed as the market saw a considerable improvement in risk sentiment today. 

All told, today's session marked a solid start in reversing Monday's weakness. Though the rebound certainly was technical in some aspects, it was encouraging to see investors buy the dip across software and tech names, while a smattering of headlines around productivity software integration to the Claude Cowork model also offered some reprieve. 

Investors will have another sizable batch of earnigns reports to assess after the close while awaiting President Trump's State of the Union address this evening, which is expected to extensively feature the economy and affordability.

U.S. Treasuries had a subdued showing on Tuesday, keeping yields near their closing levels from Monday. The 2-year note yield settled up two basis points to 3.46%, and the 10-year note yield finished unchanged at 4.03%. 

• S&P Mid Cap 400: +8.2% YTD
• Russell 2000: +6.9% YTD
• DJIA: +2.3% YTD
• S&P 500: +0.7% YTD
• Nasdaq Composite: -1.6% YTD

Reviewing today's data:

• December FHFA Housing Price Index 0.1% (Briefing.com consensus 0.4%); Prior was revised to 0.7% from 0.6%
• December S&P Case-Shiller Home Price Index 1.4% (Briefing.com consensus 1.4%); Prior 1.4%
• February Consumer Confidence 91.2 (Briefing.com consensus 86.0); Prior was revised to 89.0 from 84.5
  • The key takeaway from the report is that the month-over-month improvement was driven by increased expectations, with all three components of the index-income, business, and labor market conditions-advancing from January.
• December Wholesale Inventories 0.2% (Briefing.com consensus 0.2%); Prior 0.2%