Global Tech Stocks Rebound Amid Earnings Season and Fed Decision Anticipation

Global tech giants ascended after a sell-off that rocked worldwide markets. Traders prepare for the onset of the megacap earnings season and the looming Federal Reserve rate decision.

Market Overview

* Equities Rebound: Nasdaq 100 surged 1%, led by a 2.7% jump in Nvidia Corp.
* Treasury Yields Rise: Bond yields edged higher across the curve.
* Dollar Strengthens: U.S. dollar index climbed 0.3%.

Tech Sector Resilience

* Concerns over DeepSeek's AI model subsided, reinforcing the transformative power of AI.
* UBS Global Wealth Management warns against excessive concentration and passivity in AI investing.
* Nasdaq 100 rally could face headwinds during upcoming tech earnings reports.

Fed Decision Watch

* Investors anticipate Chairman Jerome Powell's guidance on inflation at the Fed's two-day meeting.
* No interest rate cuts are expected, but signals on inflation trajectory are crucial.

Corporate Highlights

* Boeing: CEO Kelly Ortberg announces business realignment and asset sales.
* Starbucks: Top management reshuffle to enhance customer experience.
* JetBlue: Higher-than-expected cost outlook for 2023.
* Royal Caribbean: Strong profit forecast exceeds expectations.
* Chevron: Partnership to develop natural gas facilities near data centers.
* Lockheed Martin: Earnings per share forecast falls below analyst estimates.
* RTX Corp.: Supports Trump's orbital missile defense system aspirations.
* Kimberly-Clark: Quarterly sales decline and earnings miss expectations.

Key Events

* Fed rate decision and news conference (Wednesday)
* Tesla, Microsoft, Meta, ASML earnings (Wednesday)
* Eurozone ECB rate decision (Thursday)
* US GDP and jobless claims (Thursday)
* Apple, Deutsche Bank earnings (Thursday)
* ECB rate decision and news conference (Thursday)
* US personal income, PCE inflation, and employment cost index (Friday)

Market Performance

* S&P 500: +0.5%
* Nasdaq 100: +1%
* Dow Jones Industrial Average: +0.3%
* Stoxx Europe 600: +0.5%
* MSCI World Index: +0.4%
* Bloomberg Magnificent 7 Total Return Index: +1.5%
* Russell 2000 Index: +0.3%

* Bloomberg Dollar Spot Index: +0.3%
* Euro: -0.5%
* British Pound: -0.5%
* Japanese Yen: -0.7%

* Bitcoin: +1.9%
* Ether: +1.2%

* 10-year Treasury yield: +3 basis points to 4.56%
* 10-year German Bund yield: +3 basis points to 2.56%
* 10-year UK Gilt yield: Unchanged at 4.59%

* West Texas Intermediate crude: +0.3%
* Spot gold: +0.5%

This article was created with the assistance of Bloomberg Automation.