Nasdaq and S&P 500 Rebound, Nvidia Soars Almost 9%
Market Overview
The technology-heavy Nasdaq and S&P 500 indices experienced a rebound on Tuesday after a steep sell-off on Monday. The tech sector witnessed its largest two-day reversal in over two years amid concerns about a potentially cheaper AI model from Chinese startup DeepSeek.
Nasdaq and S&P 500 Performance
* Nasdaq Composite (^IXIC): Surged over 2%, recovering from a closing loss of more than 3%.
* S&P 500 (^GSPC): Rose around 0.9%.
* Dow Jones Industrial Average (^DJI): Gained roughly 0.3%.
Key Factors
* Investors sought to unwind some of the losses incurred during Monday's tech-led rout, which was fueled by buzz surrounding DeepSeek's AI model.
* President Donald Trump's renewed tariff threats raised concerns about a trade war, adding to the market's volatility.
* Focus turned to this week's Big Tech earnings, including results from Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT).
Notable Stock Performances
* Nvidia (NVDA): Bounced back with a gain of nearly 9%, erasing a portion of its record $589 billion market cap loss from Monday.
* Starbucks (SBUX): Gained over 4% after reporting earnings that beat estimates on both revenue and earnings per share.
* JetBlue (JBLU): Declined as much as 22%, marking its largest drop since 2020 due to a weak outlook for revenue per available seat mile.
Economic Indicators
* The central bank (Federal Reserve) is expected to leave interest rates unchanged at its meeting on Wednesday.
* US home prices hit a record high in November, as per the S&P Case-Shiller National Home Price Index.
Geopolitical Events
* President Trump expressed his intention to impose "much bigger" universal tariffs, fanning concerns in the market.
* General Motors CEO Mary Barra stated she had communicated her concerns regarding tariffs to President Trump.