Premarket Stock Trading Data: Dow, S&P, NASDAQ Futures
Bespoke Investment Group’s Paul Hickey noted that Apple’s reluctance to invest heavily in AI, once seen as a drawback, was now viewed positively in light of the market’s recent shift. DeepSeek, which unveiled its latest AI model on January 20, has been seen as a direct competitor to OpenAI, with some industry experts already praising its capabilities. American venture capitalist Marc Andreessen called the new AI model “one of the most amazing and impressive breakthroughs I’ve ever seen.” The market is still technically oversold but just barely, according to our trusted momentum indicator, the S&P Short Range Oscillator. The threshold for being oversold, which is our cue to look for opportunities to put money to work, is minus 4%. Before Monday’s drop, which was its worst since the 2020 COVID crash, Nvidia’s stock had soared from less than $20 to more than $140 in less than two years, for example.
NYSE
That’s why many 401(k) holders felt the pain of Nvidia’s drop, even if they didn’t know they owned any Nvidia, so long as they owned a fund that tracks the S&P 500. DeepSeek’s disruption nevertheless rocked AI-related stocks worldwide. Big Tech earnings season kicks off this week, highlighted by results from Apple, Tesla (TSLA), Meta, and Microsoft.
‘Key beneficiary of TikTok’s mishaps:’ Meta is one of Wall Street’s top AI picks headed into earnings
- That’s why many 401(k) holders felt the pain of Nvidia’s drop, even if they didn’t know they owned any Nvidia, so long as they owned a fund that tracks the S&P 500.
- This occurred when the White House employed burglars to break into the Democrat party headquarters in the Watergate building in Washington DC.
- The shock to financial markets came from China, where a company called DeepSeek unveiled a large language model that can compete with U.S. giants but at potentially a fraction of the cost.
- Four of what are often dubbed the Magnificent Seven tech stocks — Meta, Apple, Microsoft and Tesla — are due to report quarterly results this week.
- This shift is prompting traders to question the high expectations placed on semiconductor and utility firms to benefit from the AI boom.
- While only nine of the 30 Dow stocks declined, significant drops from Nvidia, Caterpillar, and Microsoft weighed on the index.
- Entrepreneurs come to the NYSE to realize their ideas and change the world.
Amanda M. Castro is a Newsweek Live Blog Editor based in New York. Her focus is reporting on U.S. politics, breaking news, consumer topics, and entertainment. She specializes in delivering in-depth news and live blog reporting and has experience covering U.S. presidential debates, awards shows, and more. Amanda joined Newsweek in 2024 from the The U.S. Sun and is a graduate of the University of New Haven. The Dow has held up better than other indexes, largely due to its lack of exposure to key stocks tied to the AI trade. While only nine of the 30 Dow stocks declined, significant drops from Nvidia, Caterpillar, and Microsoft weighed on the index.
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One effect of this has been to cause a rise in yields on US Treasury long-term bonds, reflecting fears of further inflation. The US has been experiencing a long “bull” stock market, that is rapid growth in stock prices, although this week tech stocks tumbled over the future prospects for US-built AI. The shock to financial markets came from China, where a company called DeepSeek unveiled a large language model that can compete with U.S. giants but at potentially a fraction of the cost. Nvidia lost nearly $600 billion in market value Monday as tech stocks plunged amid fears that Chinese artificial intelligence firm DeepSeek leapfrogged U.S. dominance in AI development. In stock markets abroad, movements for broad indexes across Europe dowmarkets and Asia weren’t as forceful as for the big U.S. tech stocks. Stocks edged 0.1% lower in Shanghai after a survey of manufacturers showed export orders in China dropping to a five-month low.
Technology stocks were hit hard on Monday as traders reacted to the unveiling of an artificial-intelligence model from China that investors fear could threaten the dominance of some of the largest US players. President Donald Trump recently announced the launch of Stargate, a Texas-based initiative that combines some of the leading figures in artificial intelligence in an attempt to keep the industry under U.S. control. If the drop holds, Monday will mark Nvidia’s worst day since March 2020, when the stock fell 18.5% in a single session. The Dow Jones Industrial Average briefly rallied to breakeven on Monday morning before dropping 50 points, as the broader market continued to face pressure. The S&P 500 fell 1.4%, and the Nasdaq Composite saw a larger drop of 2.3%.
The open-source model was first released in December, when the company said it took only two months and less than $6 million to create. The third crash occurred in December 2007 when George W Bush was the president. It had its origins in the deregulation of the financial sector which had occurred in the US after Ronald Reagan became president in 1980. Lax financial regulations led to ever increasingly risky assets and trading practices on Wall Street starting in the real estate market. AGI, as defined by OpenAI, refers to autonomous systems that outperform humans in most economically valuable tasks.
Dow Jones Today
U.S. stock futures are lower to close out the final full trading week of the year. However, the Dow, S&P 500 and Nasdaq still are tracking for weekly gains after solid sessions on Monday and Tuesday. Entering Friday, the Dow is up 15% year to date, the S&P is up 26.6% and the tech-heavy Nasdaq has added 33.4%. Many factors are at work to explain this, but the overriding fact is that Republicans are less likely to regulate the financial sector, or across the board, than Democrats.
- The Dow ended up nearly 300 points after falling earlier in the day, and the S&P 500 tumbled almost 1.5%.
- The company gained significant attention when it revealed that training DeepSeek-V3 required under $6 million in computing power, utilizing Nvidia’s H800 chips.
- In Tokyo, Japan’s Softbank Group Corp. lost 8.3% to pull closer to where it was before leaping on an announcement trumpeted by the White House that it was joining a partnership to invest up to $500 billion in AI infrastructure.
- By examining the performance of the stock market over that period we can identify the extent to which eight Democrat and nine Republican presidents have influenced the growth of the market.
- At first sight this seems unlikely because it did well during his first term, from 2016 to 2020 (see chart below).
- Some, though, are hopeful that DeepSeek could push tech firms in the US to become more competitive.
Dow Jones Industrial Average .DJI:Dow Jones Global Indexes
The chart shows the percentage changes in the Standard and Poor’s monthly stock price index (which gives a snapshot of the market), corrected for inflation, during the incumbencies of Republican presidents since January 1925. The pressure is on companies to keep delivering strong profits, particularly after a recent jump in Treasury yields. When bonds are paying more in interest, they put downward pressure on stock prices.
The Dow Jones Industrial Average rose 289 points, or 0.7%, and the majority of U.S. stocks climbed. But anyone holding an S&P 500 index fund, which are found in many 401(k) accounts, felt the pain because of how influential those tech giants have become on indexes. Microsoft CEO Satya Nadella also theorized that the rise of cheaper AI models like DeepSeek’s could accelerate widespread adoption of the technology and boost the space. The tech-heavy Nasdaq 100 dropped as much as 3.6%, with semiconductors and the most popular names of the AI trade seeing the deepest losses. The S&P 500 lost 2.3% at intraday lows, and the Dow Jones Industrial Average lost as many as 398 points.
Yields have been on the rise amid a solid U.S. economy and worries about possibly higher inflation coming from tariffs and other policies favored by President Donald Trump. All the worries sent investors toward bonds, which can be safer investments than any stock. The rush pushed the yield of the 10-year Treasury down to 4.52% from 4.62% late Friday. The damage was focused on AI-related stocks, while the rest of the market held up much better.