Market Rebound: Tech Stocks Lead the Charge
After a steep sell-off on Monday, the Nasdaq and S&P 500 bounced back on Tuesday, driven by a strong performance from tech stocks. Bellwether Nvidia (NVDA) led the way, surging nearly 9% after shedding a record $589 billion from its market cap the previous day. The tech-heavy Nasdaq Composite (^IXIC) jumped over 2%, while the S&P 500 (^GSPC) rose around 0.9%.
Earnings Season Heats Up
Investors are bracing for a busy week of earnings reports from tech giants Apple (AAPL), Tesla (TSLA), Meta (META), and Microsoft (MSFT). The focus will be on whether these companies can meet high expectations, particularly in light of the DeepSeek risk.
DeepSeek’s AI Model Sparks Concerns
Chinese startup DeepSeek’s potentially cheaper AI model has raised questions about US leadership in AI and the impact on chipmakers and other tech names. The risk has put a spotlight on Big Tech earnings, with investors assessing the potential implications for the industry.
Tariff Tensions Resurface
President Donald Trump’s renewed tariff threats have revived worries about a trade war, which could impact inflation and Fed policy. The dollar strengthened after Trump’s comments, which could influence the Federal Reserve’s interest rate decision on Wednesday.
Starbucks Beats Estimates
Starbucks (SBUX) reported earnings that exceeded expectations on both the top and bottom lines, despite a decline in same-store sales. CEO Brian Niccol expressed confidence in the company’s turnaround plan, citing progress in key areas.
The Container Store Emerges from Bankruptcy
The Container Store has emerged from Chapter 11 bankruptcy, refinancing its debt and gaining access to new financing. The company operated as usual throughout the process, meeting its obligations to vendors, employees, and customers.
AI-Exposed Energy Stocks Rebound
AI-exposed energy stocks, which were hit hard on Monday, began to recover on Tuesday. Constellation Energy (CEG), Vistra Corp (VST), and GE Vernova (GEV) all rose, retracing some of their losses from the previous day.
OpenAI Launches ChatGPT Gov
OpenAI has launched a new version of ChatGPT designed for US government agencies, aimed at streamlining access to its models and enabling better security and compliance. The move comes as the industry is still reeling from the breakout of a cost-efficient Chinese AI startup.
Home Prices Hit Record High
US home prices reached a record high in November, with the S&P Case-Shiller National Home Price Index rising 3.8% from a year earlier. Despite rising mortgage rates, the national index has hit a record high for the 18th consecutive month.
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