On Tuesday, Wall Street stocks gained some ground, with the recovery of chip tycoon Nvidia and all three major indexes.
The Dow Jones Industrial Average added 0.3 percent to 44, 850.35 while the broad-based S&, P 500 rose 0.9 percent to 6, 067.70.
The tech-focused Nasdaq Composite Index surged 2.0 percent to 19, 733.59.
Despite the gains, Patrick O’Hare of Briefing.com noted that this was not a broad market advance, even though there was some buying interest after AI stocks were hard-hit a day earlier.
He added that investors were likely watching upcoming tech giant financial reports as well because they were looking for assurance that Monday’s decline was an “overreaction.”
After the release of a low-cost Chinese generative AI model, US chipmaker Nvidia led a rally in tech stocks on Monday.
Nvidia, whose semiconductors power the AI industry, saw its shares drop nearly 17 percent, erasing almost $600 billion of its market value.
In contrast to the billions that US tech companies have invested in AI, DeepSeek claimed to have spent only $5.6 million on developing its model.
Nvidia shares ended 8.9 percent up on Tuesday.
Looking ahead, investors will also be eyeing the outcome of the Federal Reserve’s policy meeting, which concludes Wednesday afternoon.
At the conclusion of their meeting, policymakers are generally expected to maintain interest rates steady.
Source: Channels TV
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