Tech Stocks Rebound as AI Speculations Trigger Market Volatility

Tech stocks rebounded slightly after a sharp selloff driven by AI-led market changes. AI stock leader Nvidia saw a boost, regaining some of its massive loss. Market reactions to DeepSeek's new AI models and corporate earnings injected volatility, with investors cautious about valuations in the AI sector.

Tech stocks, including those linked to artificial intelligence, opened higher Tuesday following a sharp selloff the previous day. The market was stirred on Monday by Chinese startup DeepSeek's new AI models, which rival U.S. industry giants. AI leader Nvidia rose 3.4% early in the day, regaining some ground.

Other AI-linked stocks like Oracle and Broadcom also recovered, gaining 2.5% and 3.2%, respectively. This market fluctuation came as power companies expecting AI-driven demand posted gains. Despite these recoveries, skepticism lingered about the valuation of AI-related stocks, noted Keith Buchanan of GLOBALT Investments.

Meanwhile, Boeing faced volatility amid reporting its largest annual loss since 2020, while market observers focused on the Federal Reserve's next interest-rate decision and President Trump's proposed tariffs, which could escalate inflation concerns. Market volatility is expected to persist with earnings reports from major tech companies due this week.

(With inputs from agencies.)