Tech Stocks Recover as Nasdaq and S&P 500 Rebound
Market Overview
After a steep sell-off fueled by concerns over a new AI model from Chinese startup DeepSeek, the Nasdaq and S&P 500 rebounded on Tuesday. The tech-heavy Nasdaq Composite surged over 2%, while the S&P 500 rose by more than 1%. Notably, the tech sector is on track for its largest reversal in over two years.
Key Sector Performances
Tech stocks led the rally, with NVIDIA (NVDA) standing out as the top performer. Shares of NVDA jumped nearly 8% after shedding a record $589 billion from its market cap in the previous session. The chip sector also witnessed a rebound, with companies like Constellation Energy and Vistra Corp posting gains.
Earnings Focus
Big Tech earnings will be in the spotlight this week, with results from Apple, Tesla, Meta, and Microsoft on the horizon. Investors are also keeping an eye on potential tariff discussions from President Trump.
Economic Indicators
The Federal Reserve is expected to leave interest rates unchanged at its meeting on Wednesday. However, the central bank's policy stance and comments on inflation and economic growth will be closely monitored.
Other Notable News
* Container Store Emerges from Bankruptcy: The home goods retailer has successfully exited Chapter 11 bankruptcy, reducing debt obligations and gaining access to new financing.
* ChatGPT Gov Launch: OpenAI has introduced a tailored version of ChatGPT for US government agencies, aiming to enhance their access to AI capabilities while addressing security and compliance concerns.
* JetBlue Stock Decline: Shares of JetBlue have fallen by 22%, their largest drop since 2020, after the airline reported a disappointing first-quarter outlook and higher costs.
* US Home Prices Hit Record High: The S&P Case-Shiller National Home Price Index has reached a new peak in November, with prices rising by 3.8% year-over-year.