Nasdaq Rises 2% as Tech Stocks Rebound

After a tense session for artificial intelligence (AI)-related stocks yesterday, prices surged on bargain hunting, with Nvidia jumping nearly 9%.

nasdaq declines led by rout in Nvidia stock

Wall Street’s three major indexes closed higher on Tuesday. The Dow Jones Industrial Average, composed of 30 blue-chip stocks, gained 0.31% to close at 44,850.35 points. The S&P 500 rose 0.92% to 6,067.70 points, while the tech-heavy Nasdaq Composite surged 2.03% to 19,733.59 points.

SPX

Nvidia shares soared 8.82%, recovering some of the ground lost after suffering the largest single-day market cap loss in Wall Street history. Other semiconductor and AI-related stocks also rebounded, including TSM (+5.25%) and Broadcom (+2.57%).

AI stocks had tumbled yesterday after Chinese firm DeepSeek spooked investors with the rapid adoption of a low-cost AI model, raising concerns about the long-term profitability of the sector. However, traders seized the dip as a buying opportunity.

Besides Nvidia, major tech giants posted gains: Apple rose 3.65%, Microsoft gained 2.87%, Meta climbed 2.19%, Alphabet added 1.82%, and Amazon advanced 1.16%.

Sector Performance and Market Outlook

Sector-wise, technology led the gains with a 3.6% increase, followed by communication services (+1.26%). Within the Dow Jones, Nvidia stood out alongside Salesforce (+3.70%), Apple, Microsoft, and Amazon.

Investors are now awaiting the Federal Reserve’s first monetary policy decision of the year, set for release tomorrow. According to CME Group’s FedWatch tool, futures markets are pricing in a 97.3% probability that interest rates will remain unchanged.

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ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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