Wall Street stocks regained some ground on Tuesday, with all three major indexes advancing and chip giant Nvidia partly recovering from a slump.
On Monday, US chipmaker Nvidia led a rout in tech stocks after the emergence of a low-cost Chinese generative AI model.
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 eyeing upcoming financial reports from tech giants as well, as they look for a sense of confidence that Monday’s slump was “an overreaction.”
On Monday, US chipmaker Nvidia led a rout in tech stocks after the emergence of a low-cost Chinese generative AI model.
Nvidia, whose semiconductors power the AI industry, saw its shares drop nearly 17 percent, erasing almost $600 billion of its market value.
DeepSeek said it spent just $5.6 million developing its model, a small amount compared with the billions US tech giants have poured into AI.
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.
Policymakers are widely expected to hold interest rates steady at the end of their gathering.
