Nasdaq, S&P 500 Rebound from AI-Led Sell-Off; Nvidia Recovers
The Nasdaq and S&P 500 gained ground on Tuesday, reversing a sharp sell-off in tech stocks driven by concerns over Big Tech's investments in artificial intelligence (AI). Investors also considered President Donald Trump's renewed tariff threats ahead of a Federal Reserve meeting.
The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, following a closing loss of over 3%. The S&P 500 (^GSPC) increased by 0.2%, while the Dow Jones Industrial Average (^DJI) held steady.
Nvidia (NVDA) rebounded more than 1%, partially recovering from a 17% plunge the previous session. The chip giant's decline was triggered by concerns about the potential impact of Chinese startup DeepSeek's cheaper AI model on US leadership in AI.
Meanwhile, the US dollar (DX=F) strengthened amid Trump's tariff threats, which revived concerns about a trade war. Investors await the Fed's two-day policy meeting, where the impact of the tariffs is expected to be discussed.
General Motors Reports Positive Earnings
General Motors (GM) released strong earnings, reporting a beat on sales and profit, buoyed by growth in its electric vehicle (EV) and China operations. Boeing (BA), however, posted an annual loss of nearly $12 billion due to a strike and operational challenges.
Big Tech Earnings in Focus
Investors will focus on Big Tech earnings this week, including results from Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT). DeepSeek's potential impact on AI spending is likely to be a key topic of discussion.
Other Notable Updates:
* US home prices reached a record high in November, with the S&P Case-Shiller National Home Price Index rising 3.8% from the previous year.
* The Nasdaq and S&P 500 attempted to recover on Tuesday, following a sharp tech-led sell-off on Monday.
* GM CEO Mary Barra discussed tariffs with President Trump and expressed optimism about the manufacturing sector.