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Futures up: Dow 0.06%, S&P 500 0.32%, Nasdaq 0.59%

Jan 28 (Reuters) - Futures tied to the S&P 500 and the

Nasdaq were higher on Tuesday after steep losses in the previous

session, when the popularity of a low-cost Chinese artificial

intelligence model rattled stocks of U.S. companies invested in

the technology.

Monday's selloff came after Chinese startup DeepSeek

launched AI models it says are on a par or better than

industry-leading models in the United States at a fraction of

the cost.

"The narrative on Monday was that the eye-watering sums

spent on AI capex by mega-cap tech companies could be somewhat

obsolete if a cheaper solution exists," analysts at BCA Research

said in a note.

AI chip leader Nvidia ( NVDA ) rose 4.8% in premarket

trading, a day after $593 billion was wiped off its market value

in the biggest single-session loss for any company.

Other AI-linked stocks also regained some ground, with

Oracle and Broadcom ( AVGO ) rising 3.5% and 4%,

respectively.

Power companies, which are expected to see a surge in demand

from energy-intensive data centers needed to develop AI

technology, were broadly higher after tumbling a day earlier.

Vistra ( VST ) and GE Vernova ( GEV ) added 4.6% and 3%.

The tech-heavy Nasdaq dropped more than 3% on

Monday, its worst single-day showing in more than a month, while

the benchmark S&P 500 fell close to 1.5%.

At 04:51 a.m. ET on Tuesday, Dow E-minis were up 25

points, or 0.06%, S&P 500 E-minis were up 19.5 points,

or 0.32%, and Nasdaq 100 E-minis were up 125.75 points,

or 0.59%.

Company earnings are likely to take center stage this week.

Boeing ( BA ), General Motors ( GM ) and Lockheed Martin ( LMT )

are among the companies due to report quarterly results

later in the day, while "Magnificent 7" members Microsoft ( MSFT )

, Facebook-parent Meta, Apple ( AAPL ) and

Tesla are slated for later this week.

Also in focus, the Federal Reserve is widely expected to

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

of the year on Wednesday, while the December reading of personal

consumption expenditures (PCE) is scheduled for Friday.

A January consumer confidence reading is due at 10 a.m. ET

later in the day.

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

impose tariffs on imported computer chips, pharmaceuticals and

steel.

A media report said newly elected Treasury secretary Scott

Bessent has been pushing for new universal tariffs on U.S.

imports to start at 2.5% and rise gradually by the same amount

each month.

Markets have been on edge about Trump's proposed tariffs on

concerns they could exacerbate inflationary pressures and slow

Fed rate cuts.