Weekly Market Update

Weekly Financial Update

As we approach the end of January, the markets have experienced a rollercoaster ride, with Big Tech earnings taking center stage. The Nasdaq and S&P 500 were rattled by claims from Chinese startup DeepSeek that its AI assistant uses cheaper chips and less data than leading models, but performs equally well. This has raised concerns about the profitability of US leadership in AI and the potential impact on chipmakers like Nvidia.

Key Takeaways:

1. Big Tech earnings season kicks off: Results from Apple, Tesla, Meta, and Microsoft were reported, with investors focusing on guidance for future profit.
2. Nvidia's market value drops $589 billion: The stock plunged nearly 17% after DeepSeek's announcement, wiping out a record amount of market value.
3. Federal Reserve holds first policy meeting of 2025: Officials will be monitoring President Trump's policies and trade war concerns, which may pose challenges to the central bank.

Market Performance:
• Nasdaq Composite (^IXIC) sank more than 3% on Monday
• S&P 500 (^GSPC) dropped nearly 1.5%
• Dow Jones Industrial Average (^DJI) gained more than 0.6%

Earnings Recap:
• Tesla (TSLA) reported quarterly results that largely fell short of Wall Street's expectations, but shares were higher by about 3% after hours
• Meta (META) and Microsoft (MSFT) both saw their stocks move lower after reporting results

Stay informed with our weekly web post.