Stock Market Rebounds as Tech Giants Lead
The Nasdaq and S&P 500 indices surged on Tuesday, recovering from a tech-driven sell-off sparked by concerns over AI investments. The tech-heavy Nasdaq Composite (^IXIC) soared by more than 1.7%, reversing its previous-day decline of over 3%. The S&P 500 (^GSPC) rose by nearly 0.7%, while the Dow Jones Industrial Average (^DJI) climbed by 0.3%.
President Trump's Tariff Threats and Fed Meeting
Meanwhile, the dollar (DX=F) strengthened due to renewed tariff threats from President Donald Trump, raising worries about a trade war. Investors are also monitoring the Federal Reserve's two-day policy meeting, which is expected to leave interest rates unchanged despite recent solid economic data.
General Motors' Positive Earnings
General Motors (GM) reported strong quarterly results, with increased sales and profits due to growth in its EV and China businesses. However, Boeing (BA) disclosed a significant annual loss of nearly $12 billion due to a strike and issues in key units.
Focus on Big Tech Earnings
Amid concerns over the DeepSeek AI startup, attention has shifted to upcoming earnings reports from major technology companies, including Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT).
ChatGPT Gov Launched
OpenAI announced the release of ChatGPT Gov, a tailored version of its AI chatbot designed specifically for US government agencies. The tool aims to streamline government access to AI models and enhance security for handling sensitive data.
JetBlue's Weak Outlook Weighs On Stock
JetBlue (JBLU) shares plunged by up to 22% following a disappointing first-quarter outlook for revenue. The airline anticipates a revenue decline or marginal increase, against expectations of growth.
US Home Prices Reach Record High
Data indicates that US home prices reached a record high in November, with the S&P Case-Shiller National Home Price Index rising by 3.8% from a year earlier. Despite increasing mortgage rates, the index remained at a record level for the 18th consecutive month.
Nvidia Recovers Amid AI Concerns
AI chip giant Nvidia (NVDA) bounced back by more than 2%, attempting to recover from a 17% plunge the previous day. The company's valuation was questioned in light of DeepSeek's announcement of a more cost-effective AI model.
CEO Mary Barra Addresses Tariffs
General Motors CEO Mary Barra has discussed tariffs with President Trump and believes he supports a robust manufacturing sector. GM's earnings release assumes a stable policy environment and does not incorporate potential tariff impacts.