Rebounding tech stocks drove 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 climbed 0.9% to claw back more than half of its earlier drop. The Dow Jones industrial average added 136 points, or 0.3%, and the Nasdaq composite rallied 2% after sliding 3.1 % the day before.

The spotlight remained on Nvidia, whose chips are powering much of the move into AI and whose stock has become a symbol of the surrounding frenzy. It rose 8.8% after plunging nearly 17% the day before, which was its worst drop since the 2020 COVID crash.

Other AI-related companies also held steadier, including chip company Broadcom, which rose 2.6%. Constellation Energy picked up 1.4% after plummeting nearly 21% on Monday. It had earlier rallied on expectations it will help supply the electricity that vast AI data centers would gobble up.

Such revenues are threatened after DeepSeek, a Chinese company, said it was able to develop a large language model that can perform as well as big U.S. rivals but at a fraction of the cost.

Outside of AI-related industries, stocks held up fairly well on Monday, and they were mixed Tuesday following a set of mixed profit reports.

Royal Caribbean steamed 12% higher after the cruise operator topped analysts’ profit expectations for the end of 2024.

JetBlue Airways, meanwhile, lost a quarter of its value, 25.7%, despite reporting a milder loss for the latest quarter than analysts expected.

Later this week will come profit reports from some of Wall Street’s most influential companies, including Apple, Meta Platforms, Microsoft and Tesla.

All told, the S&P 500 rose 55.42 points to 6,067.70. The Dow Jones Industrial Average added 136.77 to 44,850.35, and the Nasdaq composite rallied 391.75 to 19,733.59.

In the bond market, which had been driving much of Wall Street’s action before Monday’s upheaval, Treasury yields held relatively steady.

The yield on the 10-year Treasury remained at 4.53%, where it was late Monday.

— Associated Press