Tech Surge Stabilizes U.S. Stocks Amid AI Concerns

U.S. stocks closed near unchanged after a tumultuous trading day marked by tech shares recovering from earlier losses. Concerns about AI disruptions led to recent selloffs, but technology stocks rebounded alongside financials. Investors remain vigilant amid fluctuating market trends and upcoming economic indicators.

U.S. stocks nearly broke even on Tuesday, bouncing back after early trading difficulties. Technology shares, which faced initial drops, showed resilience with gains from Nvidia and Apple offsetting declines from Microsoft and Oracle. Financial stocks lent further support, helping stabilize the market.

Recent apprehensions surrounding AI's potential impact on business models contributed to a prior selloff in software and brokerage sectors. While technology stocks recovered, the sector's stability remains uncertain, particularly as Chinese advancements in AI compound existing market tensions.

Despite the tech rally, software stocks still felt pressure, with the S&P 500 software index down over 1%. Investors are watching upcoming economic reports closely, including the personal consumption expenditure report, to gauge the Federal Reserve's interest rate strategies amidst evolving market conditions.

(With inputs from agencies.)