Nvidia's sharp decline on Monday resulted in a loss of nearly US$600 billion in market capitalization, representing the largest single-day drop for a public company in stock market history.
The Federal Reserve's policy committee is anticipated to maintain interest rates at current levels, disregarding President Trump's push for lower rates from the independent US central bank.
The dollar strengthened after Trump expressed interest in implementing tariffs that are 'much bigger' than the 2.5 percent proposed by his Treasury Secretary, heightening concerns about a trade war.
The S&P 500 and Nasdaq experienced gains on Tuesday, signaling a revival in investor confidence, despite lingering apprehensions about the impact of AI on the market.