U.S. stocks closed broadly higher on Tuesday (Feb. 25) as concerns over AI disrupting businesses temporarily cooled. Bitcoin touched 62,510 yesterday, just a step away from its recent low of 60,000. Bitcoin perpetual funding rates have turned negative again, indicating market sentiment remains bearish. Traders will be closely watching NVIDIA's earnings report, set to be released after the bell on Wednesday.

AMD Leads Chip Stocks, Software Stocks Rebound

U.S. stocks closed broadly higher on Tuesday (Feb. 25) as fears of AI impact subsided.

AMD shares rose nearly 9% after Meta announced a multi-year partnership agreement. Under this new deal, Meta will deploy up to 6 gigawatts of AMD graphics processors in its AI data centers. Additionally, Meta will invest in AMD through a performance-based warrant, allowing it to hold up to 160 million AMD shares.

Anthropic announced that its Claude Cowork platform can now connect to DocuSign and other existing enterprise tools like Google Drive and Gmail. This move has made investors optimistic that artificial intelligence can complement software companies rather than replace them. The disruptive change brought by AI means risk for some, but opportunity for others.

Bitcoin Dips to 62K, Market Sentiment Remains Bearish

The crypto market continues to slide, with the total market cap falling 0.7% to 2.22 trillion USD. 24-hour liquidations remained high at 383 million USD, led by Bitcoin and followed by Ethereum. The Fear & Greed Index remains at the "Extreme Fear" level.

Bitcoin touched 62,510 yesterday, hovering near its recent low of 60,000. Bitcoin Perpetual Funding Rates have turned negative again, suggesting that market sentiment remains skewed towards pessimism.

Countdown to NVIDIA Earnings

Traders are closely monitoring NVIDIA's earnings report, due after the close on Wednesday, with expectations that the chipmaker will significantly beat forecasts. Previously, NVIDIA's recent stock performance had been flat as investors sold off large-cap stocks.

The U.S. measure imposing a 10% tariff on global goods took effect on Tuesday. The market is also closely watching developments in the U.S.-Iran situation. Additionally, President Trump will deliver the State of the Union address on Tuesday evening local time, outlining his administration's priorities for the coming year.

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