NEW YORK/BENGALURU (Jan 28): US stocks ended higher on Tuesday, with Nvidia and other artificial intelligence (AI)-linked technology shares recovering from sharp losses the previous day, as investors snapped up bargains.
The Nasdaq led gains and AI chip leader Nvidia gave the index its biggest boost, a day after Nvidia’s 17% drop erased about US$593 billion (RM2.6 trillion) from its market value in the biggest single-session loss for any company.
The S&P 500 technology sector rose the most of any S&P 500 sector, while an index of semiconductor shares also gained.
Investors were eager to hear from Apple, Microsoft, and other companies when they report quarterly results this week.
The tech sell-off followed Chinese startup DeepSeek’s launch of AI models it said were on a par or better than industry-leading US rivals at a fraction of the cost.
“We’re getting the typical bounceback rally you’d expect when you have news that’s not very specific, and more of a potential for a future change,” said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
“Some of the tech market, particularly around AI, was ready for a bit of a sell-off, and this news provided the excuse for it. Today, you’re seeing the bargain hunters come back in and also those who are discounting the news about DeepSeek, since we don’t really know very much about it.”
Nvidia’s forward price-to-earnings ratio, a common valuation metric, earlier hit its cheapest level since December 2023.
According to preliminary data, the S&P 500 gained 54.68 points, or 0.91%, to end at 6,066.96 points, while the Nasdaq Composite gained 391.75 points, or 2.03%, to 19,733.59. The Dow Jones Industrial Average rose 134.17 points, or 0.30%, to 44,847.71.
Fourth-quarter 2024 US earnings season is in full swing, with shares of Royal Caribbean rallying after the cruise operator forecast annual profit largely above expectations.
Boeing shares were volatile after the planemaker reported its biggest annual loss since 2020. General Motors shares fell following its results and outlook, with investors weighing the threat of tariffs that could hit the automaker’s business.
US President Donald Trump said late on Monday that he plans to impose tariffs on imported computer chips, pharmaceuticals and steel.
On Wednesday, the US Federal Reserve is widely expected to hold its lending rate steady in its first interest-rate decision of the year.
Uploaded by Liza Shireen Koshy
