Nasdaq, S&P 500 Rebound After AI-Led Rout, Nvidia Gains 2%
Key Points:
* Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) rebound on Tuesday following a steep tech sell-off driven by AI concerns.
* Tech-heavy Nasdaq gains over 1%, while S&P 500 rises nearly 0.5%.
* Chipmaker Nvidia (NVDA) climbs 2%, recovering a portion of its previous session's 17% plunge.
* Investors assess President Trump's tariff threats and the impact of the Federal Reserve's policy meeting.
Stock Market Overview:
The Nasdaq Composite (^IXIC) rose more than 1%, rebounding from a closing loss of over 3% on Monday. The S&P 500 (^GSPC) gained nearly 0.5%, while the Dow Jones Industrial Average (^DJI) climbed 0.3%.
Tech Sector Rebounds:
Tech stocks led the market higher, with Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL, GOOG), and Microsoft (MSFT) all rising. Nvidia (NVDA) recovered 2% in early trading, retracing a fraction of its previous session's 17% plunge, which was triggered by concerns over Chinese startup DeepSeek's potentially cheaper AI model.
Tariff Concerns and Fed Meeting:
Investors monitored renewed tariff threats from President Trump, which revived worries about a trade war. The dollar (DX=F) strengthened on these concerns.
The Federal Reserve's two-day policy meeting, which began on Tuesday, is being closely watched by investors. The central bank is expected to leave interest rates unchanged, but its policy decisions could impact economic growth and inflation.
Earnings Updates:
General Motors (GM) reported a better-than-expected quarter, posting a profit beat as its EV and China businesses improved. Boeing (BA) reported an annual loss of almost $12 billion, impacted by a strike and problems in key units.
Big Tech earnings will be in focus this week, with results from Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT) on the docket.