Tech Stock Sell-Off Eases After DeepSeek Scare
Published On Jan 28, 2025, 1:55 AM
After a sell-off earlier in the week due to competition from a Chinese AI startup called DeepSeek, U.S. tech stocks began to stabilize. The S&P 500 rose 0.5% and the Nasdaq composite increased by about 1%. Major companies like Alphabet, Microsoft, and Nvidia all saw gains. Nvidia had lost a significant amount of its market cap on Monday but managed to regain some value on Tuesday. Analyst predictions for upcoming tech earnings suggest increasing pressure on companies to maintain growth expectations amidst rising competition and economic challenges.
Stock Forecasts
NVDA
Positive
Nvidia has shown resilience following a significant loss in market value and has regained some of it amid competitive challenges from DeepSeek. The upcoming earnings report will be crucial in determining market sentiment around Nvidia’s long-term growth potential. Given the renewed interest in AI and Nvidia's strong position in the market, the stock is expected to continue its upward trend as long as earnings meet or exceed expectations.
SPY
Neutral
The broader tech sector remains under pressure due to competition and economic uncertainties. While there was a brief recovery, it is essential for investors to monitor upcoming earnings reports closely, as unexpected results could lead to further volatility.
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