Wall Street is looking to claw back some of yesterday's steep tech-lead declines with megacap earnings and a Fed meeting in focus.

U.S.-listed shares of tech giants are gaining some lost ground this morning after a China-based startup shocked the AI world with a powerful LLM. Yesterday, shockwaves rippled across the American tech industry after news spread over the weekend about a powerful new large language model (LLM) from China called DeepSeek.

The Dow Jones held up best out of major indexes on the stock market today. Nvidia plunged due to concerns of China AI firm DeepSeek.

The stock market saw a sharp drop, with the Nasdaq leading the decline, falling nearly 3%, as fears about AI’s future shook investor confidence. The rise of Chinese AI startup DeepSeek, which claims to offer cheaper and equally effective AI solutions,

The market reaction proved particularly severe for Nvidia (NASDAQ: NVDA), with shares plummeting and erasing half a trillion in market cap at the time of this writing. To put this staggering figure in perspective,

Short sellers of artificial intelligence-related stocks raked in bumper profits after the smashing debut of low-cost AI models from China's DeepSeek spooked Wall Street, with bets against Nvidia yielding record profits totaling more than $6 billion.

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

Nvidia faced a massive blow after Chinese start up drew huge attention in the AI space