Tech Stocks Rebound, NVIDIA Surges
On Tuesday, the Nasdaq and S&P 500 rebounded, offsetting a steep tech sell-off triggered by DeepSeek, a Chinese startup. NVIDIA (NVDA), a bellwether in the tech sector, stood out, gaining nearly 9% after losing a record $589 billion in market capitalization the previous day.
NVIDIA's Rise Powers Tech Sector
Backed by NVIDIA's surge, the tech-heavy Nasdaq Composite (^IXIC) rose over 2%, recovering from a closing loss of more than 3%. The S&P 500 (^GSPC) climbed around 0.9%, while the Dow Jones Industrial Average (^DJI) gained roughly 0.3%. Notably, the tech sector notched its most significant two-day reversal in over two years.
Focus Shifts to Big Tech Earnings
Amid the DeepSeek risk, focus intensifies on earnings from Big Tech companies this week. Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT) are scheduled to report results. Investors will also assess President Trump's renewed tariff stance, with the Federal Reserve's interest rate decision looming on Wednesday.
Starbucks Rises on Earnings Beat
Starbucks (SBUX) shares climbed over 4% after the coffee giant reported earnings that surpassed estimates on both top and bottom lines. Same-store sales declined for the fourth consecutive quarter, but the company remains optimistic about its turnaround strategy.
Fed Policy in Focus
The Federal Reserve is expected to leave interest rates unchanged, buoyed by solid economic data. However, Trump's tariff threats have revived concerns about a trade war, adding uncertainty to the central bank's policy path.
Container Store Emerges from Bankruptcy
The Container Store has emerged from Chapter 11 bankruptcy, refinancing its short-term debt, reducing long-term debt obligations, and gaining access to new financing. The company remains in operation and has met its obligations to vendors, employees, and customers.
AI-Exposed Power Stocks Attempt Recovery
AI-exposed power stocks attempted a rebound after Monday's tech rout. Constellation Energy (CEG), Vistra Corp (VST), and GE Vernova (GEV) gained ground, retracing some of their declines. Analysts speculate that data center deployment remains intact in the medium term, but the future trajectory remains uncertain.
Trump's Mixed Messages on Tariffs
President Trump's inconsistent signals on tariffs are confusing markets and businesses. While his orbit attempts to calm concerns, Trump's own statements suggest a different approach, adding complexity to the trade policy landscape.
OpenAI Launches ChatGPT Gov
OpenAI released ChatGPT Gov, a tailored version of ChatGPT designed for US government agencies. This product aims to enhance government access to AI models while addressing security and compliance requirements.
US Home Prices Hit New Record
US home prices reached a record high in November, as the pace of increases accelerated. The S&P Case-Shiller National Home Price Index rose 3.8% from a year earlier, despite rising mortgage rates.
General Motors CEO Speaks on Tariffs
GM CEO Mary Barra has conveyed her concerns about tariffs to President Trump. While GM assumes a stable policy environment in its earnings guidance, Barra emphasizes the company's preparedness to minimize potential impacts.