US Market Rebounds Following Tech Sell-Off Triggered by Chinese Startup
Summary
After a steep decline in tech stocks on Monday due to concerns over a new AI model from Chinese startup DeepSeek, US markets rebounded on Tuesday. The Nasdaq and S&P 500 rallied, led by gains in Nvidia and other tech giants.
Specific Details
* Nasdaq Composite (^IXIC): Surged over 2%, recovering from a closing loss of more than 3% on Monday.
* S&P 500 (^GSPC): Rose around 0.9%, while the Dow Jones Industrial Average (^DJI) gained roughly 0.3%.
* Nvidia (NVDA): Soared almost 9% after shaving off a record $589 billion from its market cap in the previous session.
* Big Tech Earnings in Focus: Investors await earnings from Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT) this week.
* Tariff Concerns Linger: President Donald Trump's recent threats of new tariffs have raised worries about a trade war.
* Federal Reserve Interest Rate Decision: The central bank is expected to leave interest rates unchanged, despite solid economic readings.
* Starbucks (SBUX): Rose over 4% after reporting stronger-than-expected earnings.
* The Container Store Emerges from Bankruptcy: Emerged from Chapter 11 bankruptcy, refinancing debt and securing new financing.
Industry-Specific Impacts
* Power Stocks: Attempted a rebound after being crushed in the tech rout due to concerns over energy demand for AI data centers.
* JetBlue (JBLU): Fell as much as 22% following a disappointing outlook for revenue.
* US Home Prices: Hit a record high in November, with prices rising 3.8% from a year earlier.
Other News
* OpenAI launches ChatGPT Gov for US government agencies.
* GM CEO Mary Barra discusses tariff concerns with President Trump.
* Boeing reports a $11.8B loss, the largest since 2020.