S&P 500 futures inched higher early Tuesday after a sell-off fueled by worries over the emergence of Chinese artificial intelligence startup DeepSeek and its implications for technology investment and profits in the U.S. S&P 500 index futures rose 0.1% and Nasdaq 100 futures gained about 0.2%. Meanwhile, Dow Jones Industrial Average contracts fell 61 points, or 0.1%. Futures were trading in step with Nvidia in the premarket, with both trading off earlier recovery highs. Nvidia added more than 3% after slumping nearly 17% Monday, losing almost $600 billion in market value — the biggest ever one-day drop for a U.S. company. Broadcom and Oracle also rebounded more than 3% and 2%, respectively, and the Technology Select Sector SPDR Fund (XLK) inched up about 0.5% after sliding 4.9% in the previous session. “Valuations remain extended, and while vulnerabilities were expected this year, developments like DeepSeek highlight the need for diversification beyond the Mag Seven,” said Seema Shah, chief global strategist at Principal Asset Management. “The 2025 theme of US exceptionalism is now facing uncertainty, with ongoing concerns around tariffs and inflation adding to market challenges.” Concerns over DeepSeek came to a head on Monday, with the Nasdaq Composite losing more than 3%, while the S&P 500 slid about 1.5%. The Chinese startup last month unveiled a free open-source large language model that it says took less than $6 million to build. The development spurred worries around Big Tech’s investment into AI. DeepSeek surpassed rival OpenAI on Monday to become the most-downloaded free app in the U.S. on Apple’s App Store. Investors’ attention is turning toward corporate earnings due this week. Starbucks is due to report Tuesday after the bell. A slate of Magnificent Seven companies will report in the coming days, with Meta PlatformsMicrosoftTesla and Apple due later this week. The Federal Reserve will also kick off its two-day policy meeting on Tuesday. Fed funds futures are pricing in a more than 99% chance that interest rates will remain unchanged, according to CMEGroup’s FedWatch Tool. Inflation data out Friday will give investors further insight on the health of the U.S. economy. U.S. Treasury yields rose on Tuesday as investors looked to the Federal’s Reserve’s first meeting of the year where interest rate decisions will be made. The 10-year Treasury yield rose more than 3 basis points to 4.561%, while the 2-year Treasury yield rose 2 basis points to 4.216%. Hong Kong stocks rose Tuesday after Wall Street saw a massive drop in shares of tech companies, while several Asia-Pacific markets were closed for the Lunar New Year holiday. Hong Kong’s Hang Seng Index ended the day 0.14% higher 20,225.11. The market only traded for half the day due to the new year. Japan’s Nikkei 225 closed 1.39% lower at 39,016.87 while the Topix was flat at 2,756.90. This is the second day that both indexes are in negative territory. Australia’s S&P/ASX 200 ended the day 0.12% lower at 8,399.1, after gains in the previous session. Weakness in gold miners, energy and technology stocks was partially offset by gains in iron ore miners and financial players. Taiwan, South Korean and Chinese markets are closed for holidays. Oil prices edged higher but remained near a two-week low on Tuesday, as weak economic data from China and rising temperatures elsewhere dampened demand prospects. Supporting prices was a disruption of oil loading operations in Libya. Brent crude oil futures were up 55 cents, or 0.70%, to $77.63 per barrel. U.S. West Texas Intermediate crude futures were up 49 cents, or 0.67%, to $73.66. Brent settled on Monday at its lowest since Jan. 9, while WTI hit its lowest since Jan. 2. Gold prices held steady on Tuesday, anchored by stability in European equities and U.S. stock futures, a day after bullion’s sharp decline amid a tech-led sell-off. Spot gold added 0.2% at $2,746.79 per ounce. U.S. gold futures rose 0.4% to $2,750.30. “After the drop yesterday, with gold likely being used to cover losses in other asset classes, stable equity markets in Europe are keeping gold stable too,” UBS analyst Giovanni Staunovo said. Gold fell over 1% on Monday, marking its steepest drop since Dec. 18, as investors rushed to liquidate bullion to offset losses triggered by a sharp pullback in technology stocks, spurred by DeepSeek’s low-cost, low-power AI model, casting doubt on the dominance of traditional AI giants.