(Bloomberg) — Stocks in Asia are poised to follow a tech-led rebound on Wall Street in the wake of a selloff that shook global markets as focus turns to the Federal Reserve’s rate decision and US mega-cap earnings.

Most Read from Bloomberg

Futures are pointing to gains in Sydney and Tokyo, with other major markets in the region closed for Lunar New Year holidays. The S&P 500 rose 0.9% and the Nasdaq 100 climbed 1.6%, as Nvidia Corp. rallied 8.9% following the largest market value loss in history. The dollar and oil gained as President Donald Trump vowed tariffs bigger than those reportedly under consideration by incoming Treasury Secretary Scott Bessent.

A relative sense of calm prevailed on Wall Street, following a rough start to the week on concern that a cheap artificial intelligence-model from Chinese startup DeepSeek could make valuations of the technology that has powered the bull market tough to justify.

“Was it a bit unnerving? Yes, for some. Should you panic? Not at all,” said Kenny Polcari at SlateStone Wealth. “If you talk to anyone that bought stock yesterday, they loved the opportunity to buy some of these names at a deep discount. In the end, no matter how this plays out, competition is good. And remember, you get what you pay for.”

Focus will now shift to the Federal Reserve decision on rates and the start of the big-tech reporting season on Wednesday — a key test for AI bulls. While profits from the so-called Magnificent Seven behemoths are still rising — and far outpacing the rest of the market — growth is projected to come in at the slowest pace in almost two years.

“The dust is now settling after Monday’s long overdue AI reckoning, and while we still believe in the AI-driven productivity story, investing in this sector going forward may not be as easy as it was over the past two years,” said Emily Bowersock Hill at Bowersock Capital Partners. “We expect investors to be more discerning and selective when it comes to AI investing.”

As the Fed’s two-day meeting began, bond traders are ratcheting up bullish bets on US Treasuries in hopes that Chair Jerome Powell signals a cut in March is firmly on the table. A survey conducted by 22V Research shows 67% of respondents expect the reaction to the Fed Wednesday to be “mixed/negligible,” 21% said “risk-off” and 12% “risk-on.”

Story Continues