The billionaire investor says US stocks are in a “very similar” position as in the lead-up to the internet bubble bust at the turn of the millennium.

Global technology stocks regained some ground on Tuesday a day after a low-cost Chinese AI model rattled markets, while traders rotated back into the dollar from safe-haven currencies.

U.S. stocks on Tuesday were regaining some ground after Monday's sharp selloff, with the S&P 500 and the Nasdaq Composite trading near their session highs as investors digested DeepSeek's AI advancement and awaited decisions from the Federal Reserve's first policy meeting of the year.

AI could raise productivity growth from 0.8 to 1.5 percentage points a year. That rivals the boosts we got from the transcontinental railroads, mechanization of agriculture and interstate highway system.

Asia-Pacific markets trade following a sell-off on Wall Street overnight amid concerns over Chinese startup DeepSeek’s free open-source AI model challenging the dominance of U.S. AI leaders triggered a risk-off sentiment.

Nvidia, S&P 500, and Nasdaq erase earlier gains as AI fears persist. Investors brace for earnings and Fed signals amid volatile market conditions.

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.

The selloff could provide traders an attractive entry opportunity in higher-beta altcoins such as Solana's SOL, which endured a double-digit pullback, one analyst said.

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.

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.

Rebounding tech stocks drove U.S. indexes higher a day after they tumbled on doubts about the artificial intelligence frenzy.