Stock market today: Nasdaq, S&P 500 chip away at losses after DeepSeek-inspired tech rout
Published On Jan 28, 2025, 9:32 AM
The Nasdaq and S&P 500 saw upward movement after recent declines driven by concerns over competitiveness in AI, mainly due to the announcement of a new AI model from the Chinese startup DeepSeek. Nvidia shares rebounded by more than 7% after plummeting 17% previously, illustrating investor anxiety regarding the potential impact of cheaper AI solutions on US tech stocks. Meanwhile, the market is also responding to new tariff threats from President Trump as the Federal Reserve begins its policy meeting, with further focus on upcoming earnings reports from major tech companies such as Apple and Tesla.
Stock Forecasts
NVDA
Positive
Nvidia has shown resilience in its stock performance despite the recent downturn caused by market fears regarding competition in AI technology. Given this rebound after such a steep drop, and continuing demand for AI technology, Nvidia's stock appears to be a strong buy, particularly as the company maintains a dominant position in AI chips.
GM
Positive
General Motors posted impressive earnings and forecasted stable earnings growth despite external economic pressures, including potential tariffs. This positions GM favorably for continued investment interest as it adapts to EV markets and assures investors about its financial health. There may be potential for upward movement in GM's stock as it gains momentum in its operations.
JBLU
Negative
Given the uncertainty surrounding Trump's tariffs and mixed market signals, JetBlue is facing significant headwinds. The substantial drop in its stock value indicates investor pessimism regarding its outlook. This situation could lead to further declines if earnings expectations do not improve, suggesting a negative trend for JetBlue's stock.
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