Wall Street Bounces Back Ahead of Nvidia Earnings

Wall Street's main indexes recovered on Tuesday as technology stocks bounced back from a selloff ahead of Nvidia's earnings report and an inflation data release. The gains could ease investor concerns sparked by a recent bond market rout that has lifted yields and pressured equities.

Nvidia's results on Wednesday will be the next test for the earnings-driven rally, with any signs of slowing growth potentially reigniting concerns over stretched valuations and how long the AI boom can sustain. 'This is the classic problem of being the epicenter of the buildout, when you are the trade, execution stops being a catalyst and becomes a prerequisite,' said Mark Malek, chief investment officer at Siebert Financial.

The S&P 500 and Nasdaq Composite recovered from Monday's sharp selloff in semiconductor shares, with megacaps such as Nvidia and Meta trading higher. Chipmakers Intel and Micron also rose by 1.5% and 2.5%, respectively, while data-storage company Western Digital added 1.8%.