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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

(Updates to close)

By Caroline Valetkevitch

NEW YORK, Jan 28 (Reuters) -

U.S. stocks ended higher on Tuesday, with Nvidia ( NVDA )

and other artificial intelligence-linked technology shares

recovering from sharp losses the previous day as investors

snapped up bargains.

The Nasdaq led gains and AI chip leader Nvidia ( NVDA ) gave the

index its biggest boost, a day after Nvidia's ( NVDA ) 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 the most of

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

also gained.

Investors were eager to hear from Apple ( AAPL ),

Microsoft ( MSFT ) and other companies when they report

quarterly results this week.

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.

According to preliminary data, the S&P 500

gained 54.68 points, or 0.91%, to end at 6,066.96 points,

while the Nasdaq Composite gained 391.75 points, or

2.03%, to 19,733.59. The Dow Jones Industrial Average

rose 134.17 points, or 0.30%, to 44,847.71.

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

swing, with shares of Royal Caribbean rallying after the

cruise operator forecast annual profit largely above

expectations.

Boeing ( BA ) shares were volatile after the planemaker

reported its biggest annual loss since 2020. General Motors ( GM )

shares fell 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.

(Additional reporting by Shashwat Chauhan, Lisa Pauline

Mattackal and Sukriti Gupta in Bengaluru; Editing by Devika

Syamnath and Richard Chang)