Asian stocks climbed Tuesday as Wall Street recovered much of the prior week’s losses, with investors looking ahead to U.S. inflation data for clues on the Federal Reserve’s next steps.

The S&P 500 rose 2.35%, the Nasdaq gained 2.74% and the Dow Jones advanced 2.15%, while Nvidia fell 4.27% amid concerns about tighter chip-export restrictions.

Hyundai Motor Securities cited lower oil prices after Donald Trump suggested military action against Iran was less likely, bargain hunting in AI stocks and interest in Anthropic’s planned IPO as factors supporting the rebound.

The sell-off exposed how sensitive markets have become to the AI investment boom: expectations for future profits remain high, but investors are uncertain about when and how much those investments will pay off.

Alphabet, Amazon, Meta and Microsoft are expected to spend about $740 billion on AI chips, data centers and related infrastructure this year, sharply reducing their combined free cash flow.

Investors still need to weigh how AI companies will fund spending beyond free cash flow and whether enough land, electricity and data-center capacity will be available; Schneider said catalysts for a sustained rally could be limited before year-end.

CoreWeave’s results eased immediate concerns that demand could not support its debt-funded expansion, and the company reported a revenue backlog of about $132.5 billion as of Sept. 30, subject to delivery and service availability.

Even so, investors continued to question whether CoreWeave’s debt burden is sustainable.

The recovery suggests longer-term confidence in AI demand remains, but high valuations and potential shifts in U.S. policy leave the sector vulnerable to renewed volatility.

Lower oil prices and easing geopolitical tensions have not resolved structural uncertainties in AI, and renewed bad news could quickly revive selling; the article urges investors to build cash rather than chase the rebound.

One strong session does not establish a lasting uptrend: the outlook depends on inflation, Federal Reserve policy and corporate earnings, as well as whether gains spread beyond technology to industrial, financial, healthcare and consumer companies.

For now, the rebound looks more like a technical bounce after a steep decline than proof that risks have passed, with investors watching data-center regulation, Nvidia-related developments and Anthropic’s IPO.