Rebounding tech stocks are driving U.S. indexes higher Tuesday, a day after they tumbled on doubts about whether the artificial-intelligence frenzy really needs all the dollars being poured into it. The S&P 500 was 1% higher in late trading and clawing back nearly two-thirds of its earlier drop.

After plunging 17% on Monday, Nvidia looks set to recover on Tuesday, with its stock up 5% in premarket trade.

U.S. stocks recovered some ground Tuesday morning after getting hammered by fears over China's DeepSeek AI model built on a shoestring budget.