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The Nasdaq and other major indexes rebounded on Tuesday, recovering from the sharp sell-off triggered by DeepSeek’s crash, which had sent AI stocks tumbling. Nvidia, which plunged over 16% on Monday, regained more than 7% in the rebound.

By the late afternoon, the tech-heavy Nasdaq surged 408 points, or 2%, while the S&P 500 and Dow Jones Industrial Average rose 1% and 0.3%, respectively.

Meanwhile, investors are closely watching the Federal Reserve’s two-day policy meeting, due on Wednesday.

Nvidia and other tech stocks are rebounding

Nvidia ( NVDA ) stock saw a slight turnaround Tuesday after the chipmaker suffered its biggest single-day market value loss because of an artificial intelligence chatbot challenger in China .

Other major chip stocks also recovered a bit on Tuesday, including Broadcom ( AVGO ) and Taiwan Semiconductor Manufacturing Co. ( TSM ).

Major earnings due this week

This week, significant earnings reports are due from big tech companies, such as Apple ( AAPL ), Tesla ( TSLA ), Meta ( META ), and Microsoft ( MSFT ). Other than tech giants, Visa ( V ), Mastercard ( MA ), Novartis ( NVS ), and others will also share their financial report cards.

— Rocio Fabbro contributed to this article

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