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Royal Caribbean rises on higher-than-expected profit

forecast

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Results from Microsoft ( MSFT ), Apple ( AAPL ) due this week

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Indexes up: Dow 0.3%, S&P 500 up 0.9%, Nasdaq up 2%

(Updates to afternoon trading)

By Caroline Valetkevitch

NEW YORK, Jan 28 (Reuters) -

U.S. stocks rose on Tuesday, with artificial

intelligence-linked and other technology shares bouncing back

from sharp losses the previous day as investors snapped up

bargains.

The Nasdaq led gains. AI chip leader Nvidia ( NVDA )

added 6.8%, giving the index its biggest boost, a day after its

17% drop erased about $593 billion from its market value in the

biggest single-session loss for any company.

The S&P 500 technology sector rose 3%, the

most of any S&P 500 sector, while an index of semiconductor

shares was up 0.5%.

Investors also were eager to hear from Apple ( AAPL ),

Microsoft ( MSFT ) and other companies when they report

quarterly results this week. Shares of Apple ( AAPL ) were up 3.9%.

The tech sell-off followed Chinese startup DeepSeek's

launch of AI models it said were on a par or better than

industry-leading U.S. rivals at a fraction of the cost.

"We're getting the typical bounceback rally you'd expect

when you have news that's not very specific and more of a

potential for a future change," said Rick Meckler, partner,

Cherry Lane Investments, a family investment office in New

Vernon, New Jersey.

"Some of the tech market, particularly around AI, was

ready for a bit of a sell-off, and this news provided the excuse

for it. Today you're seeing the bargain hunters come back in and

also those who are discounting the news about DeepSeek since we

don't really know very much about it."

Nvidia's ( NVDA ) forward price-to-earnings ratio, a common

valuation metric, earlier hit its cheapest level since December

2023.

The Dow Jones Industrial Average rose 114.64

points, or 0.25%, to 44,826.86, the S&P 500 climbed 54.28

points, or 0.90%, to 6,066.40 and the Nasdaq Composite

gained 380.18 points, or 1.96%, at 19,721.42.

Fourth-quarter 2024 U.S. earnings season is in full

swing, with shares of Royal Caribbean up 12.4% after the

cruise operator forecast annual profit largely above

expectations.

Boeing ( BA ) shares, last up 2.1%, were volatile after

the planemaker reported its biggest annual loss since 2020.

General Motors ( GM ) shares fell 8.8% following its results and

outlook, with investors weighing the threat of tariffs that

could hit the automaker's business.

U.S. President Donald Trump said late on Monday he plans

to impose tariffs on imported computer chips, pharmaceuticals

and steel.

On Wednesday, the Federal Reserve is widely expected to

hold its lending rate steady in its first interest-rate decision

of the year.

Declining issues outnumbered advancers by a 1.44-to-1 ratio

on the NYSE. There were 140 new highs and 42 new lows on the

NYSE.

On the Nasdaq, 1,856 stocks rose and 2,483 fell as

declining issues outnumbered advancers by a 1.34-to-1 ratio.

(Additional reporting by Shashwat Chauhan, Lisa Pauline

Mattackal and Sukriti Gupta in Bengaluru; Editing by Devika

Syamnath and Richard Chang)