Recent market developments are actually quite interesting. On Tuesday, U.S. stocks rebounded across the board, with the Dow, the S&P 500, and the Nasdaq all rising—especially the Nasdaq, which gained more than 1%. Several major signals behind this rebound are worth paying attention to.

First is important news from the AI sector. Anthropic announced it will partner with Intapp to launch AI agent tools for professional services companies. At the same time, it is also developing a host of plugins with partners such as FactSet, deeply integrating AI capabilities into professional tools like investment banking, accounting, and legal software. This move is crucial because it sends a “collaboration rather than replacement” signal, essentially giving the market reassurance. Previously, the market had been worried that AI would upend the software industry, but now the software sector has warmed up overall. Driven by this news, Thomson Reuters’ stock price surged as much as 14.2%.

In addition, Meta and AMD also made big moves. Meta plans to deploy AMD computing chips with processing power equivalent to 6 gigawatts—representing a multi-year order worth $60 billion. At the same time, it can also buy up to 160 million shares of AMD at $0.01 per share, representing 10% equity in AMD. This deal directly pushed AMD’s stock up by 8.77%.

When it comes to payments, one interesting development is that Stripe is reportedly considering a full or partial acquisition of PayPal. PayPal’s stock has fallen sharply in recent years, dropping from its July 2021 record high of $308 to today’s level—down more than 85%. However, once the acquisition rumors came out, PayPal’s stock rose 6.7% on the day to $47.02. This suggests the market still looks favorably on PayPal’s future prospects in payment-related functions such as withdrawals.

In commodities, gold ended its four-day winning streak. On Tuesday, it fell 1.59% to $5,142.4 per ounce. Oil also slipped slightly, down 0.32% to $66.08 per barrel. Copper, however, is holding steady. Citigroup expects the copper price to rise to $14,000 per ton over the next three months, citing still-strong buy orders at lower levels in both the physical and financial markets, along with expectations for seasonal inventory drawdown in China.

In the crypto market, Bitcoin fell 1.74% over 24 hours to $76,750, while Ethereum dropped 3.03% to $2,280.

On the macro front, the U.S. released new data on consumer confidence. The Conference Board’s February index reached 91.2, better than the expected 87.1, which also provides support for the stock market rebound. The VIX volatility index also fell to nearly 7%, and market risk sentiment has clearly improved.

The Federal Reserve is still weighing the impact of AI on monetary policy. Governor Cook said AI may lead to an increase in the unemployment rate in the short term, while also pushing up the neutral interest rate—creating new challenges for monetary policy. Goolsbee emphasized that they cannot cut rates early just because productivity is expected to improve; they must wait until inflation truly falls. It looks like the pace of rate cuts this year will not be that fast.

Bank of England Governor Bailey said a rate cut in March remains undecided and depends on new data. These cautious stances from central banks reflect the complexity of the current inflation situation.

Interestingly, the U.S. is also reportedly actively seeking quotes on the yen exchange rate, preparing to work with Japan to intervene in the currency market, mainly for geopolitical and financial stability considerations.

Overall, this market rebound is mainly driven by progress in AI commercialization, large corporate investments, and improving consumer confidence. However, the cautious stance of central banks and the stubbornness of inflation remain key risks to watch going forward.