US shares close Tuesday with gains as AI-related stocks bounce back

(MENAFN) US Stocks closed higher on Tuesday, recovering some of the losses from the previous day. Stocks related to artificial intelligence (AI), which had experienced sharp declines on Monday, bounced back. The overall equity market showed a positive trend, with notable gains in several sectors.

The previous drop in AI-related stocks had been triggered by the announcement of a new AI model developed by Chinese startup DeepSeek. This model used fewer chips and completed its development in less time than those of international competitors, causing a decline in shares of global chip companies, particularly in the tech sector.

US President Donald Trump commented positively on DeepSeek’s AI model, stating that it should serve as a “wake-up call” for the American tech industry. Shares of US chip giant Nvidia, which had fallen 17 percent on Monday due to a significant decrease in its market value, saw a recovery on Tuesday, rising by about 9 percent. Similarly, Broadcom’s stock increased by around 2.6 percent.

On the macroeconomic front, US durable goods orders dropped by 2.2 percent in December. Despite this, the major indices ended the day on a positive note, with the Dow Jones Industrial Average up by 0.31 percent, or 136.77 points, to 44,850.35. The S&P 500 rose 0.92 percent, or 55.42 points, to 6,067.70, while the Nasdaq Composite gained 2.03 percent, or 391.75 points, to 19,733.59.

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