Nasdaq and S&P 500 Rebound, Nvidia Soars as Tech Recovers

Key Insights:

* The Nasdaq and S&P 500 rebounded on Tuesday, recovering from Monday's tech sell-off.
* Nvidia, bellwether of the tech sector, surged nearly 9%, recouping some of its massive losses.
* The rebound comes as investors assess the impact of a cheaper AI model from Chinese startup DeepSeek on the US tech industry.
* The Nasdaq Composite (^IXIC) gained over 2%, while the S&P 500 (^GSPC) rose around 0.9%.
* The Dow Jones Industrial Average (^DJI) increased roughly 0.3%, marking its biggest two-day reversal in over two years.

AI Stock Focus:

* Nvidia's gains aided the Nasdaq's surge, with shares finishing up nearly 9% despite a record $589 billion loss in market cap the previous session.
* Investors are scrutinizing Big Tech earnings this week, particularly results from Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT).
* The DeepSeek risk raises questions about whether chipmakers can meet high earnings expectations.

Economic Factors:

* The central bank is expected to leave interest rates unchanged, given recent solid economic data.
* President Trump's tougher stance on tariffs has revived concerns about a trade war, already in focus after a standoff with Colombia.
* Trump aims for tariffs "much bigger" than the 2.5% proposed by Treasury Secretary Scott Bessent.

Company News:

* Starbucks (SBUX) shares rose over 4% after-hours after reporting earnings that beat estimates.
* The Container Store has emerged from Chapter 11 bankruptcy, repaying $40 million in new money financing.
* OpenAI launched ChatGPT Gov, tailored for US government agencies, as the industry copes with DeepSeek's breakout.
* JetBlue (JBLU) shares plunged 22%, their biggest drop since 2020, after a disappointing outlook for revenue per available seat mile.
* US home prices hit a record high in November, with the S&P Case-Shiller National Home Price Index rising 3.8% year-over-year.
* GM CEO Mary Barra has discussed tariffs with President Trump, emphasizing the importance of a strong manufacturing sector.