Markets Take a Breather Ahead of Big Tech Earnings and Fed Decision
The tech-heavy Nasdaq Composite fell over 0.7% on Wednesday morning, following a rebound on Tuesday. The S&P 500 and Dow Jones Industrial Average also dipped, as investors exercised caution ahead of the first Big Tech earnings and the Federal Reserve’s interest rate decision.
Fed Policy Verdict Looms Large
The central bank is expected to maintain interest rates, but investors will be listening closely to Fed Chair Jerome Powell’s press conference for clues on future rate cuts and the impact of President Trump’s tariff moves.
ASML Surges on Strong Earnings and AI Demand
Shares of ASML, a key toolmaker in the AI chip chain, popped 5% in early trading after the company reported better-than-expected fourth-quarter earnings and strong order bookings. CEO Christophe Fouquet dismissed concerns that DeepSeek’s breakthrough would hurt demand for AI chips, saying it presents an opportunity for more chip demand.
Nvidia Rebounds, But Still Faces AI Uncertainty
After a brutal Monday, Nvidia shares rebounded on Tuesday, but fell nearly 5% on Wednesday. The AI chipmaker’s fate remains tied to the guidance in Meta and Microsoft’s quarterly results, due after the bell, and the ongoing saga surrounding DeepSeek’s challenge to AI spending and costs.
Alibaba Releases AI Model, Claims Superiority Over DeepSeek
Shares of Alibaba jumped over 4% after the Chinese tech giant released a new AI model, which it claims is better than DeepSeek’s rival to ChatGPT. The drama deepened with claims by Microsoft-backed OpenAI that DeepSeek used its proprietary models to train its competitor.
Tesla Earnings: A New Catalyst Needed
Tesla rounds out Wednesday’s megacap earnings, with Wall Street watching for a new catalyst to jump-start the stock. Meanwhile, Starbucks shares surged over 5% after reporting quarterly results, with CEO Brian Niccol promising more caffeinated growth.
Trump Media & Technology Group Expands into Financial Services
Shares of Trump Media & Technology Group rose nearly 15% in premarket trading after the company announced an expansion into financial services, including customized exchange-traded funds and bitcoin investments.
Economic Data and Earnings Ahead
Today’s economic data includes MBA Mortgage Applications, while earnings are due from Tesla, Meta, Microsoft, and others. The Fed’s rate decision and Big Tech earnings will set the tone for the market’s direction in the coming days.
Leave a Reply