Stock market today: Nasdaq leads declines, Dow stalls ahead of Fed decision

Published On Jan 29, 2025, 11:23 AM

On Wednesday, tech stocks fell slightly ahead of major Big Tech earnings reports and the Federal Reserve's interest rate announcement, leaving investors cautious. The Nasdaq Composite dropped over 0.7%, whereas stocks like ASML surged by 5% following a strong rise in bookings and CEO remarks about high AI chip demand. Meanwhile, Nvidia's stock fell nearly 5% due to uncertainty about AI investments after a competitor's advancements. Alibaba's shares rose more than 4% after launching a new AI model that claims to outperform its rival. With Big Tech earnings due, all eyes are on companies like Meta and Tesla for signs of robust growth amid AI investments.

Stock Forecasts

ASML

Positive

Given the strong demand for AI technology and favorable earnings from ASML, investment in semiconductor stocks appears promising. ASML's CEO indicated a potential increase in chip demand due to AI advancements, which bodes well for growth in this sector.

NVDA

Negative

Nvidia's recent price decline indicates a negative sentiment following intense competition and a drastic drop in market value linked to AI spending concerns. Investors may remain cautious ahead of its earnings report.

BABA

Positive

Alibaba's successful launch of a competitive AI model may boost its stock as it positions itself strongly within the tech landscape, signaling a good opportunity for investment as tech demand grows.

SBUX

Positive

Starbucks' ongoing turnaround may provide a positive outlook for its stock, especially after better-than-expected results. Investors' response suggests confidence in management's strategy to drive growth, albeit without specific timelines for projections.

META

Neutral

Anticipated earnings reports from Meta and Tesla could clarify ongoing sentiments towards tech investments, potentially affecting not just these stocks but the overall sector depending on their performance and guidance.

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