The stock market rallied Tuesday with a slew of AI stocks that may be DeepSeek winners flashing buy signals. Microsoft, Meta, Tesla and the Fed loom Wednesday.

Global technology stocks regained some ground on Tuesday a day after a low-cost Chinese AI model rattled markets, while traders rotated back into the dollar from safe-haven currencies.

U.S. stocks on Tuesday were regaining some ground after Monday's sharp selloff, with the S&P 500 and the Nasdaq Composite trading near their session highs as investors digested DeepSeek's AI advancement and awaited decisions from the Federal Reserve's first policy meeting of the year.

AI could raise productivity growth from 0.8 to 1.5 percentage points a year. That rivals the boosts we got from the transcontinental railroads, mechanization of agriculture and interstate highway system.

Stock futures are pointing to a mixed open for major indexes Tuesday as the market steadies itself after yesterday's sharp downturn.

Japanese tech firms sank Tuesday following a rout on Wall Street after China's DeepSeek chatbot upended the artificial intelligence sector and sparked questions about huge investments by US titans. Tokyo-listed companies linked to the artificial intelligence sector tanked for a second straight day as investors tracked a rout on Wall Street that saw Nvidia crumble 17 percent,

U.S. stocks finished higher on Tuesday, as the S&P 500 and the Nasdaq Composite recovered most of their losses from the previous session after the sudden rise of Chinese AI startup DeepSeek sent shockwaves through Wall Street.

Nvidia, S&P 500, and Nasdaq erase earlier gains as AI fears persist. Investors brace for earnings and Fed signals amid volatile market conditions.

Investor exuberance over artificial intelligence (AI) has fuelled a “bubble” in United States stocks that resembles the build-up to the dotcom bust at the turn of the millennium, billionaire investor Ray Dalio has warned.

The S&P 500 was down 1.6% in morning trading. Big Tech stocks took some of the heaviest losses, with Nvidia down 11.2%, and they dragged the Nasdaq composite down 2.7%. The Dow Jones Industrial Average, which has less of an emphasis on tech, was holding up better with a dip of 123 points, or 0.3%, as of 9:50 a.m. Eastern time.

The selloff could provide traders an attractive entry opportunity in higher-beta altcoins such as Solana's SOL, which endured a double-digit pullback, one analyst said.

The billionaire investor says US stocks are in a “very similar” position as in the lead-up to the internet bubble bust at the turn of the millennium.