AI Stock Resurgence: Nasdaq Climbs Amid Tech Rally

U.S. technology stocks rebounded, with the Nasdaq jumping 2% led by a significant recovery in Nvidia shares. After a sharp sell-off prompted by AI competition from China, investors seized buying opportunities. Apple and Microsoft are set to release earnings reports later in the week.

In a striking rebound, U.S. technology stocks, particularly those linked to artificial intelligence, ended Tuesday on a high note. Nvidia, which had suffered a dramatic 17% decline the previous day, surged by 8.9% as investors hunted for bargains across the market.

The Nasdaq jumped by 2%, with the S&P 500 technology sector experiencing its largest daily gain since July, up 3.6%. Investors are eagerly anticipating quarterly results from tech giants like Apple and Microsoft, coming later this week.

Market fluctuations were influenced by the launch of competitive AI models from China's DeepSeek, stirring a temporary sell-off. Major U.S. indices saw gains despite mixed performances from General Motors and Boeing, while economists await the Federal Reserve's rate decision.

(With inputs from agencies.)