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,

Nvidia, which designs chips used in AI applications, clawed back gains of 8.9% on Tuesday, leaving it well below last week’s levels. All three major indices on Wall Street finished higher, with the Nasdaq Composite rising 2.

Nvidia Corp., the poster child of the AI frenzy, sank 17 per cent and headed toward the biggest market-cap loss for a single stock in market history. The AI leader wiped of $500 billion of its market value and shed 21 per cent off its stock price in two days.