The global financial markets were abuzz with activity on Tuesday, as Nasdaq and S&P 500 futures made a slight recovery following a recent stock sell-off triggered by concerns about the future of Big Tech’s investments in AI. With President Donald Trump’s renewed stance on tariffs adding to the mix, investors were eagerly awaiting the start of a Federal Reserve meeting to assess the potential impact of his policies.
Key points to consider:
- Nasdaq 100 (Nq = f) futures inched up by around 0.2%, bouncing back from a significant loss in the previous session.
- S&P 500 futures (Es = f) showed a modest gain of 0.1%, while Dow Jones Industrial Average futures (YM=F) remained relatively stable.
- The recent tech-led rout, fueled by optimism around Chinese startup DeepSeek’s AI model, raised doubts about the sustainability of high earnings expectations for chipmakers and other tech giants.
- Nvidia, a leading chip manufacturer, experienced a rollercoaster ride with a significant plunge followed by a pre-market rebound of almost 3%.
- Trump’s renewed tariff threats caused the dollar (DX=F) to strengthen, reigniting concerns about a potential trade war and its impact on global markets.
- General Motors (GM) delivered positive earnings results, highlighting its progress in the EV and China sectors, while Boeing (BA) reported a substantial annual loss due to internal challenges.
- Anticipation runs high for upcoming earnings reports from tech titans like Apple, Tesla, Meta, and Microsoft, as investors brace for potential market fluctuations.
As the Fed’s policy meeting looms, keeping interest rates unchanged amidst solid economic indicators, the market remains on edge, awaiting further developments. The landscape of the financial world is ever-changing, and staying informed and vigilant is key to navigating through these uncertain times. Stay tuned for the latest updates on Tuesday, January 28, 2025, as the stock market journey continues.
Leave feedback about this