Nvidia Leads Stock Market Rebound as AI Uncertainty Looms
Traders on the floor of the New York Stock Exchange watched as Nvidia’s shares surged 6% on Tuesday, following a 17% plunge the previous day that erased nearly $600 billion in market value. The tech giant’s rebound was a welcome sign for the market, which had been reeling from concerns over the impact of DeepSeek, a Chinese startup that has developed an open-source AI model at a fraction of the cost of similar technology.
Nvidia’s share price had tumbled on Monday after DeepSeek’s announcement sparked worries about the future of the AI market, which has driven the run in chipmakers and other tech stocks. The uncertainty has introduced a new element into the market, according to Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
Despite the uncertainty, investors remain bullish on the technology sector, which has been boosted by the AI trade. However, the recent volatility has investors looking to corporate earnings and central bank decisions for guidance. A slate of high-profile companies, including Meta Platforms, Microsoft, Tesla, and Apple, are set to report earnings this week, while the Federal Reserve is expected to keep interest rates steady and signal potential rate cuts later this year.
