U.S. Stocks Bounce Back after AI-Led Sell-Off, Earnings in Focus
Premarket Outlook:
Futures tied to the S&P 500 and Nasdaq are trading higher on Tuesday, partially recovering from the previous session's losses.
AI-Related Stocks Rebound:
* AI chip leader Nvidia gained 4.8% premarket after losing $593 billion in market value on Monday.
* Oracle and Broadcom also saw upticks of 3.5% and 4%, respectively.
* Power companies, such as Vistra and GE Vernova, are rising after a dip on Monday.
Monday's Sell-Off:
* The tech-heavy Nasdaq dropped over 3% on Monday, its worst single-day performance in over a month.
* The benchmark S&P 500 fell close to 1.5%.
* The sell-off was driven by concerns over a low-cost Chinese artificial intelligence (AI) model.
Company Earnings:
* Boeing, General Motors, and Lockheed Martin are scheduled to report earnings later today.
* This week will see reports from "Magnificent 7" members Microsoft, Facebook-parent Meta, Apple, and Tesla.
Other Market News:
* The Federal Reserve is expected to keep interest rates unchanged at its meeting on Wednesday.
* The December personal consumption expenditures (PCE) reading is due on Friday.
* A consumer confidence reading from January is anticipated later today.
Tariffs on Imports:
* President Trump announced plans to impose tariffs on computer chips, pharmaceuticals, and steel.
* A media report suggests that the Treasury Secretary is advocating for gradual tariff increases on U.S. imports.
* Markets remain concerned about potential inflationary pressures and the impact on Fed rate cuts.