US stocks opened higher on Tuesday as technology and semiconductor shares rebounded, giving Wall Street some relief after the previous session’s losses. Investors are closely watching upcoming Nvidia earnings and US inflation data, which could influence expectations for Federal Reserve interest-rate policy.

At the opening bell, the Dow Jones Industrial Average rose 177.8 points, or 0.33%, to 53,594.92. The S&P 500 gained 23.8 points, or 0.31%, to 7,676.66, while the Nasdaq Composite advanced 168.5 points, or 0.65%, to 26,148.71.

Tech Stocks Lead the Recovery

Technology shares recovered after coming under pressure during Monday’s trading session. Semiconductor stocks were among the key gainers, with investors positioning themselves ahead of Nvidia’s quarterly results.

Nvidia, widely viewed as a major indicator of the strength of the artificial intelligence investment boom, is scheduled to report its results on Wednesday. Its performance and outlook could influence sentiment across the broader technology and AI sectors.

Nvidia Earnings in Focus

Investors are looking for signs that demand for AI chips and data-centre infrastructure remains strong.

Nvidia’s results are particularly important because the company has become a major gauge of the broader AI ecosystem. Strong earnings and an upbeat outlook could support technology stocks, while weaker-than-expected results could increase concerns about elevated valuations in the AI sector.

Inflation Data Could Influence Fed Policy

Markets are also awaiting key US inflation data later this week.

Investors will use the figures to assess the outlook for Federal Reserve interest rates. Inflation trends, Treasury yields and upcoming comments from Fed officials could determine whether expectations for monetary policy shift in the coming months.

Wall Street Recovers After Monday Sell-Off

Monday’s session saw technology stocks come under pressure. The S&P 500 fell 0.28%, while the Nasdaq dropped 0.77%. The Dow, however, gained 0.27%.

The rebound on Tuesday suggests investors are willing to buy technology stocks again ahead of several important market catalysts.

Geopolitical Risks Remain

Investors are also keeping an eye on developments surrounding US sanctions on Iran and their potential impact on energy prices and the broader economy.

Oil prices have recently fallen, helping ease some pressure on markets, but continued geopolitical uncertainty remains a risk for investors.