US stocks opened higher on Tuesday as investors continued to buy back into technology shares following last week’s sharp market sell-off.
The S&P 500 rose 40 points, or 0.55%, to 7,446 in early trading, extending the rebound that began at the start of the week.
Technology stocks once again led the advance, helping lift the Nasdaq Composite by 0.75% as investors regained confidence in the sector after recent volatility.
The recovery follows a difficult period for technology and semiconductor stocks, which came under pressure amid concerns over elevated valuations and expectations that the Federal Reserve could keep interest rates higher for longer.
Investors have since returned to the sector, encouraged by easing geopolitical tensions in the Middle East and renewed optimism surrounding long-term demand for artificial intelligence infrastructure.
The latest gains suggest markets are increasingly viewing last week’s sell-off as a correction rather than the start of a broader downturn, although investors remain alert to upcoming economic data and central bank commentary that could influence the interest rate outlook.
Technology shares have been at the centre of the market’s recovery, with semiconductor and AI-related companies continuing to attract strong investor interest despite recent volatility.
Early trading pointed to improving risk appetite across Wall Street as investors looked beyond geopolitical uncertainty and focused once again on corporate earnings growth and the expanding AI investment cycle.
