U.S. stocks were mixed on Tuesday as Wall Street struggled to find direction following the long weekend, with lingering anxiety over AI disruption continuing to weigh on risk sentiment. Choppy price action reflected investor caution after weeks of sharp swings tied to fears that AI could upend business models across multiple industries.
The S&P 500 slipped modestly after early gains faded, while the tech-heavy Nasdaq Composite underperformed as pressure returned to growth-oriented names. The Dow Jones Industrial Average held closer to flat, supported by its lower exposure to technology stocks, underscoring the market’s ongoing rotation away from AI-sensitive sectors.
Market Movers:
- Corsair Gaming (CRSR) +54%: Shares surged after the company delivered a solid quarterly earnings beat, helping ease concerns about demand in gaming peripherals. Investors also welcomed Corsair’s first-ever share repurchase authorization, which added confidence around capital discipline.
- Tri Pointe Homes (TPH) +27%: The homebuilder jumped after agreeing to be acquired in an all-cash deal that values the company at roughly $4.5 billion. The transaction highlighted continued foreign interest in U.S. housing assets despite elevated mortgage rates.
- Rivian Automotive (RIVN) +23%: Shares rallied as investors focused on improving delivery expectations and accelerating software and services revenue, offsetting weaker automotive sales. Management’s outlook for higher 2026 production helped restore confidence after recent EV sector volatility.
- Applied Materials (AMAT) +12%: The stock climbed after upbeat results and guidance reinforced the company’s position as a key beneficiary of AI-driven semiconductor spending. Strong demand for advanced packaging and memory-related tools helped drive the move.
- Roku (ROKU) +10%: Shares advanced following a strong earnings report and better-than-expected forward guidance. Platform revenue growth and improving profitability helped reassure investors amid broader concerns about ad spending.
- Pinterest (PINS) -21%: The stock slid sharply after issuing a softer-than-expected outlook, reviving worries about AI’s impact on digital discovery and advertising platforms. Slowing revenue growth overshadowed otherwise steady user engagement trends.
- DraftKings (DKNG) -14%: Shares fell after full-year guidance disappointed, even as quarterly revenue rose sharply. Investors reacted to signs that customer growth may be leveling off after an aggressive expansion phase.
- Callaway Golf (CALY) -13%: The stock dropped after a major revenue miss and cautious guidance raised concerns about demand normalization following post-pandemic strength. Margin pressure added to the negative reaction.
AI Disruption Fears Continue to Shape Market
Concerns around AI-driven disruption remain a key theme, with investors increasingly scrutinizing which industries may face long-term structural pressure. Recent selloffs have extended beyond software into sectors such as logistics, real estate, financial services, and transportation, reinforcing the view that AI’s impact may be broader than initially assumed.
That uncertainty has kept volatility high, with many investors reluctant to chase rallies until earnings clarity improves. The uneven performance across sectors highlights how selectively markets are rewarding companies perceived as AI beneficiaries while punishing those seen as vulnerable.
Earnings and Economic Data in Focus
Earnings season is entering its final stretch, with upcoming reports expected to provide fresh insight into consumer spending, energy demand, and cybersecurity trends. Walmart’s results later this week will be closely watched for signals on household finances, while energy and tech earnings may shed light on how AI-related investment is reshaping demand.
On the macro front, investors are bracing for a batch of delayed economic data, including inflation and growth figures postponed by the recent government shutdown. These reports are expected to influence expectations around the timing and pace of Federal Reserve rate cuts.
Looking Ahead
Markets remain caught between optimism around easing inflation and unease over AI-driven disruption, a tension that is likely to keep trading volatile in the near term. With key earnings reports and economic data still ahead, investors are likely to stay cautious, favoring balance-sheet strength and earnings visibility over high-growth narratives until uncertainty around AI’s economic impact begins to clear.