Dow Jones Today: Stock Futures Steady After DeepSeek AI Selloff as Investor Focus Turns to Earnings, Fed Meeting
Stock futures are pointing to a mixed open Tuesday as the market steadies itself after the previous session’s sharp downturn.
Futures tied to the Dow Jones Industrial Average were down less than 0.1% in recent trading, while those linked to the S&P 500 and Nasdaq each rose 0.2%. The S&P 500 and Nasdaq Composite fell sharply on Monday, with technology stocks posting their worst one-day performance since 2020, as the early success of Chinese startup DeekSeek’s AI models sparked concerns about U.S. leadership in AI and the amount of money large companies are spending to develop the technology.
Several of the stocks that were hit hardest yesterday were recovering in premarket trading Tuesday. AI chipmaker Nvidia (NVDA), which shed nearly $600 billion in market value yesterday, was up 2.5% this morning. Rival Broadcom (AVGO) was up more than 3%, rebounding from a 17% decline on Monday. The iShares Semiconductor ETF (SOXX) was up 0.6% before the bell.
Shares of Oracle (ORCL), which had soared last week on news that the software maker had teamed up with OpenAI and SoftBank on a $500 billion project to develop AI infrastructure, were up 1% this morning. Constellation Energy (CEG) was up 3%, recovering from a 20% drop Monday that was fueled by fears demand for power to develop AI could wane in light of DeepSeek’s apparent cost-efficiency.
Other large-cap technology stocks were mixed. Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Meta Platforms (META) were up slightly, while Amazon (AMZN) and Tesla (TSLA) fell slightly. Investors are eagerly awaiting earnings reports from Microsoft, Meta and Tesla, which are due to be released on Wednesday, as well as Apple’s quarterly results on Thursday.
On the earnings front today, Boeing (BA) shares nudged lower after the embattled aircraft manufacturer reported a fourth-quarter loss that matched the preliminary results it issued last week. General Motor (GM) shares were flat after the automaker reported better-than-expected earnings, while defense contractor Lockheed Martin (LMT) slipped more than 3% after disappointing quarterly results.
While the earnings reports continue rolling in, investors will also be focused on the Federal Reserve, which is scheduled to begin a two-day policy meeting today. The Fed, which has cut its benchmark rate at each of its last three meetings dating back to September, is widely expected to leave the rate unchanged this week, but market participants are eager to hear the Fed’s views on economic conditions and how they could affect future rate decisions.
The yield on the 10-year Treasury, which is sensitive to expectations for interest rates, was at 4.57% this morning, up from 4.53% at Monday’s close.
Bitcoin was around $102,800, after dropping below $100,000 yesterday amid the stock market selloff. The digital currency has gained 50% since the U.S. presidential election and hit a record high of more than $109,000 last week on hopes that the crypto-friendly Trump White House will adopt policies that support the asset class.
Gold futures were up 0.4% at $2,750 an ounce in recent trading, while WTI crude oil futures gained 0.6%.