U.S. stocks rose on Tuesday, with artificial intelligence-linked and other technology shares bouncing back from sharp losses the previous day as investors snapped up bargains. The Nasdaq led gains. AI chip leader Nvidia added 6.

Nvidia stock price rally led a 2% rally on Nasdaq. The recovery in AI darling Nvidia shares came a day after the stock saw a sharp 17% drop, erasing about $593 billion from its market value in the biggest single-session loss for any company on Wall Street.

The Nasdaq & S&P 500 fell after Chinese startup DeepSeek shows AI can be built cheaply, sparking fears AI spending will stall. The blue-chip Dow rose.

Silicon Valley and Washington leaders said the app shows China can challenge the U.S. The Nasdaq lost 3 percent and chipmaker Nvidia shed $589 billion in market capitalization.