Tech Stocks Rebound Amid AI Disruption

Technology stocks, particularly Nvidia, faced significant volatility earlier this week due to the emergence of a Chinese AI model. Despite this, tech shares regained some ground along with the S&P 500 and Dow Jones. Market dynamics were influenced by U.S. tariff policies and economic concerns.

Technology stocks made a comeback on Tuesday as Nvidia rose 2.5% during early trading. This follows a historic market cap loss the previous day. The performance shift saw traders move away from safe currencies back to the dollar.

On Wall Street, a calmer atmosphere prevailed compared to Monday's turmoil. Nvidia plunged 17% on concerns about a new Chinese AI model, DeepSeek. While this shook confidence, strategists like those at Wells Fargo believe the sell-off might be excessive.

Investor focus now turns to upcoming earnings reports, including Microsoft, Tesla, and Meta. Meanwhile, U.S. tariffs, set to gradually increase, and falling consumer confidence have been key economic discussion points.

(With inputs from agencies.)