Tech Stocks Rebound After AI Sell-Off

U.S. stocks experienced a resurgence, particularly in AI-linked technology shares, after previous losses. Led by gains in Nvidia and Apple, the Nasdaq spearheaded the recovery. Investors await further tech earnings reports amid the backdrop of potential U.S. tariffs on key imports.

U.S. stocks saw a notable comeback on Tuesday, primarily driven by a rebound in artificial intelligence-related and other technology shares. This recovery follows significant losses experienced the previous day, as investors seized opportunities to acquire undervalued stocks.

The Nasdaq was at the forefront of these gains, with Nvidia leading the charge by surging 6.8%. This was notable following a prior 17% drop that wiped out approximately $593 billion from its market value. The S&P 500 technology sector saw a 3% uptick, and semiconductor shares rose by 0.5%.

The tech sector's previous sell-off was triggered by the launch of AI models from Chinese startup DeepSeek. Additionally, significant attention was on Apple and Microsoft, with quarterly results pending this week. Meanwhile, President Trump's announced tariffs on imports loom over the market, adding another layer of complexity as focus shifts to the Federal Reserve's upcoming interest-rate decision.

(With inputs from agencies.)