Dow, S&P 500, Nasdaq turn higher in volatile trading as Wall Street assesses AI fears

US stocks turned higher Tuesday in volatile trading as Wall Street continued assessing the AI jitters that have hammered markets in recent weeks.

The tech-heavy Nasdaq Composite flipped positive by 0.4%, recovering from steep losses early in the session, while the S&P 500 gained roughly 0.3%. The Dow Jones Industrial Average ticked 0.3% higher.

After a break for Presidents Day, AI concerns continue to simmer. Investors are on the lookout for the next potential victim after fresh worries about AI's ability to upend industries hit stocks in sectors from wealth management to transportation to logistics. The Dow and S&P 500 have fallen in four of the past five weeks amid that pressure.

This week, earnings season enters its final stretch. The week's highlight is Walmart's quarterly report on Thursday, the first since the retail giant joined the trillion-dollar market cap club.

Elsewhere in corporates, Paramount Skydance stock rose over 5% on Tuesday following the news that Warner Bros. Discovery has given the studio one week to come back with a better offer. Warner Bros. rejected the latest bid from the Hollywood studio.