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.

Indexes closed lower on Thursday, with the tech-heavy Nasdaq falling almost 1%, led by a slide in mega-cap tech stocks like Apple and Nvidia.

Nvidia stock (NVDA) rose modestly early Tuesday. That put the shares on course to recoup a little bit of the ground lost in the previous session's 17% crash, which was fueled by concerns about China's DeepSeek.

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

Other technology stocks trading at relatively low valuations to historical levels include Micron, Super Micro and Workday.