Today on Taking Stock | Markets Gain as Software Rebounds From Monday's Selloff.

Why It Matters

The rebound underscores tech’s underlying strength and sets the stage for Nvidia’s earnings to dictate market direction, while tariff policy shifts could provide an unexpected equity boost.

Key Takeaways

• Software stocks rebound after Monday sell‑off, driven by AI partnership narrative.
• AMD jumps on announced infrastructure partnership with Meta, boosting semiconductor sector.
• Nvidia earnings preview will set tone for tech market’s next weeks.
• Investors advised to use equal‑weight S&P exposure, buying dips in Amazon, Microsoft.
• Tariff policy uncertainty may create a market tailwind if refunds materialize.

Summary

The Taking Stock broadcast highlighted a market rally on Tuesday, February 24, as equity indices closed higher despite recent volatility. Software shares recovered from Monday’s sell‑off, buoyed by a narrative that AI firms like Anthropic are positioning themselves as partners rather than replacements. Meanwhile, semiconductor heavyweight AMD surged after announcing a large‑scale infrastructure partnership with Meta, and investors are eyeing Nvidia’s upcoming earnings as the “load‑bearing wall” for the tech sector. Key data points included the S&P 500 up roughly 0.8%, the Dow gaining about 370 points, and the Russell 2000 climbing 1.2%. Home Depot beat Q4 expectations, posting $2.72 EPS and a modest dividend hike, while Ksite Technologies rocketed over 23% after reporting a 10% revenue jump and strong recurring‑revenue growth. The discussion also covered the Trump administration’s tariff pivot, suggesting potential refunds could act as a market tailwind. Notable commentary came from Dale Smothers of RDS Wealth, who reaffirmed a bullish S&P outlook despite anticipated election‑related volatility and stressed that Nvidia’s results will shape the next two‑to‑three weeks. He also advised clients to maintain an equal‑weight S&P exposure, selectively buying dips in mega‑caps like Amazon and Microsoft. Hagerty CEO Michael Hagerty underscored the expanding classic‑car market, noting a 2026 “bull‑market list” that reflects growing collector interest across generations. For investors, the rally signals that tech fundamentals remain resilient, but volatility will persist through the election cycle and potential tariff adjustments. A balanced, equal‑weight approach with opportunistic dip buying, combined with awareness of ancillary asset classes such as classic‑car equities, could position portfolios to capture upside while navigating policy‑driven headwinds.