Leading cryptocurrencies shed early gains on Tuesday, while stocks recovered well following Monday&#8217;s DeepSeek scare.



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>–0.12%</td><td>$101,743.75</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-1.77%</td><td>$3,110.48</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-2.73%</td><td>$0.3236</td></tr></tbody></table></figure>



What Happened: Bitcoin fell to $100,260 by the evening after a surge to $103,465 in the morning hours. The leading cryptocurrency eventually rose above $101,000 as traders bought the dip.



Ethereum also gave up early advances, falling to a low of $3,044 after a move above $3,200 in the morning.



More than $300 million was liquidated from the cryptocurrency market over the last 24 hours, with $229 million in upside bets getting deleted.



Bitcoin's Open Interest slid by nearly 4% in the last 24 hours. A drop in spot price, coinciding with a drop in OI, suggested liquidation of longs.



Interestingly, 60% of Binance&#8217;s top traders were still long Bitcoin, indicating a potential rebound in the coming days.



The market sentiment remained in the "Greed" zone, according to the Crypto Fear &amp; Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Movement (MOVE)</td><td>+7.11%</td><td>$0.78</td></tr><tr><td>KuCoin Token (KCS)</td><td>+6.40%</td><td>$13.70</td></tr><tr><td>Uniswap (UNI)</td><td>+3.60%</td><td>$11.32</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.44 trillion, contracting 1.49% in the last 24 hours.



Stocks rebounded on Tuesday, recouping losses from Monday&#8217;s <a href="https://www.benzinga.com/25/01/43285369/asml-lam-research-and-kla-lead-semicap-growth-as-ai-and-tech-upgrades-drive-105-billion-market-outlook">DeepSeek-fueled decline</a>. The Nasdaq Composite lifted 2.03% to end at 19,733.59. The S&amp;P 500 rose 0.92%, closing at 6,067.70. The Dow Jones Industrial Average added 136.77 points, or 0.31%, to close at 44,850.35.



AI behemoth Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rallied 8.93%, a day after recording <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43244872/tech-stocks-tumble-on-ai-nightmare-nvidia-eyes-worst-day-since-march-2020-bitcoin-drops-below-100000-whats-driving-markets-monday">its worst single-day loss</a> in history.



Investors will turn their attention to the Federal Reserve meeting on Wednesday, with a consensus that the central bank will keep its current target rate of 425–450 bps unchanged, <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">according </a>to the CME FedWatch tool.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Widely followed cryptocurrency analyst and trader Ali Martinez spotted a sell signal on Bitcoin's hourly chart, using the TD Sequential indicator.



"Bitcoin could retest recent lows around $99,000. A rebound may follow, supported by a dovish outlook from the Fed tomorrow," Martinez predicted.



The TD Sequential indicator is a technical analysis tool that identifies potential trend exhaustion points and price reversals.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The TD Sequential indicator presents a sell signal on the hourly chart, suggesting <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> could retest recent lows around $99,000. A rebound may follow, supported by a dovish outlook from the Fed tomorrow. <a href="https://t.co/mNAbJG6rft">pic.twitter.com/mNAbJG6rft</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1884338408044233179?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Blockchain analytics firm CryptoQuant noted a significant rise in market share of&nbsp; Bitcoin holdings by U.S. entities, including exchanges, banks, and funds, suggesting that the bull market was far from over.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The bull market is not over yet "The percentage of Bitcoin holdings by U.S. entities continues to rise relative to the percentage of holdings by non-U.S. entities." – By <a href="https://twitter.com/t0_god?ref_src=twsrc%5Etfw">@t0_god</a> Read more &#x1f447;<a href="https://t.co/ctM0Bw30EM">https://t.co/ctM0Bw30EM</a> <a href="https://t.co/3oz5Xa4r9I">pic.twitter.com/3oz5Xa4r9I</a>&mdash; CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1884261903805108297?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Photo by SvetlanaParnikova on Shutterstock



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43270841/how-donald-trump-could-make-the-strategic-bitcoin-reserve-a-reality">How Donald Trump Could Make The Strategic Bitcoin Reserve A Reality</a></li>
</ul>

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NVDA

Bitcoin, Ethereum, Dogecoin Dip As Stocks Rebound: Top Trader Anticipates BTC's Fall To $99,000 But A 'Dovish' Fed Could Spark Recovery

Billionaire investor Bill Ackman questioned whether DeepSeek&#8216;s hedge fund affiliate potentially profited from Monday&#8217;s tech stock rout, which saw Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares plunge 17% following the Chinese artificial intelligence startup&#8217;s emergence as a potential disruptor.



What Happened: &#8220;What are the chances that Deepseek AI&#8217;s hedge fund affiliate made a fortune yesterday with short-dated puts on Nvidia, power companies, etc.?&#8221; Ackman wrote Tuesday on X, formerly Twitter. &#8220;A fortune could have been made.&#8221;



DeepSeek, which emerged from High-Flyer, an $8 billion Chinese quantitative hedge fund co-founded by Liang Wenfeng, according <a href="https://www.wsj.com/tech/ai/deepseek-ai-china-tech-stocks-explained-ee6cc80e">to</a> The Wall Street Journal, sparked market concerns after announcing its R1 AI model could match OpenAI&#8216;s performance at significantly lower costs without using advanced chips.



The announcement triggered a broader tech selloff that erased <a href="https://www.benzinga.com/markets/equities/25/01/43221806/nvidia-amd-broadcom-smci-tsmc-and-other-tech-giants-lead-monday-pre-market-selloff-as-nasdaq-100-futures-plummet-over-650-points-amid-reports-of-chinese-ai-startup-deepseek-overtaking-chatgpt">approximately $1 trillion in market value</a>. Companies like Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) also saw significant declines as investors questioned the massive AI infrastructure investments by U.S. tech giants.



Ackman, <a href="https://www.benzinga.com/markets/24/07/39778021/billionaire-bill-ackman-launching-new-fund-should-income-investors-search-elsewhere">through his hedge fund</a> Pershing Square Capital Management, holds a significant stake in tech giants such as Google parent Alphabet, according to 13F filings with the U.S. Securities and Exchange Commission.



High-Flyer and DeepSeek did not immediately respond to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga</a>'s request for comment.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">What are the chances that <a href="https://twitter.com/deepseek_ai?ref_src=twsrc%5Etfw">@deepseek_ai</a>'s hedge fund affiliate made a fortune yesterday with short-dated puts on <a href="https://twitter.com/nvidia?ref_src=twsrc%5Etfw">@nvidia</a>, power companies, etc.? A fortune could have been made.&mdash; Bill Ackman (@BillAckman) <a href="https://twitter.com/BillAckman/status/1884359958952571329?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/markets/equities/25/01/43293219/teslas-30k-ev-risks-being-a-nothing-burger-says-gary-black-warns-of-cannibalization-without-a-new-compact-design">Tesla&#8217;s $30K EV Risks Being A &#8216;Nothing Burger,&#8217; Says Gary Black—Warns Of Cannibalization Without A New Compact Design</a>



Why It Matters: OpenAI CEO Sam Altman acknowledged R1 as &#8220;an impressive model, particularly around what they&#8217;re able to deliver for the price,&#8221; on X, announcing plans to <a href="https://www.benzinga.com/25/01/43259545/deepseeks-r1-is-impressive-but-openai-ceo-sam-altman-says-they-will-crush-it-with-much-better-models-looking-forward-to-bringing-you-all-agi-and-beyond">accelerate some product releases in response</a>.



Nvidia <a href="https://www.benzinga.com/markets/equities/25/01/43256425/nvidia-says-deepseek-an-illustration-of-how-new-ai-models-can-be-created-while-being-export-control-compliant-amid-600-billion-market-value-plunge">defended its position</a>, stating that DeepSeek&#8217;s operations &#8220;requires significant numbers of Nvidia [chips] and high-performance networking.&#8221;



DeepSeek&#8217;s success using lower-cost chips raises <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43267966/deepseeks-low-cost-model-reshapes-ai-landscape-experts-predict-shift-to-application-layer">questions about U.S. export controls</a> on advanced semiconductors to China, suggesting either their ineffectiveness or the possibility of alternative technological approaches in AI development.



The privately-held Chinese company&#8217;s R1 model, released as open-source software, allows other companies to adapt it for their use, potentially accelerating the democratization of AI technology beyond <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43289107/will-deepseek-hurt-magnificent-7-stocks-valuation">traditional tech giants</a>.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43284388/mini-financial-crisis-for-crypto-incoming-arthur-hayes-predicts-bitcoin-dropping-to-75k-be">&#8216;Mini Financial Crisis&#8217; For Crypto Incoming? Arthur Hayes Predicts Bitcoin Dropping To $75K Before Skyrocketing To $250K By Year-End</a></li>
</ul>



Image Via Shutterstock 



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors

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Bill Ackman Questions Whether DeepSeek AI's Hedge Fund Affiliate Profited From Nvidia's Sell-Off: 'A Fortune Could Have Been Made'

On Tuesday, Cathie Wood-led Ark Invest executed significant trades involving Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).



The Tesla Trade



Ark Invest made a decisive move on Tuesday by selling 2,772 shares of Tesla Inc. through its ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>). The sale, valued at approximately $1.1 million based on Tesla&#8217;s closing price of $398.09, comes ahead of Tesla&#8217;s <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/01/43285246/teslas-q4-earnings-looms-can-the-stock-keep-its-rally-alive">anticipated fourth-quarter earnings report</a>. Investors are keenly observing Tesla&#8217;s performance, especially with CEO Elon Musk&#8217;s ambitious promise of a 30% sales increase in 2025. Despite a remarkable 106.68% rise over the past year, Tesla&#8217;s stock has seen a slight decline of 1.41% year-to-date. The market remains cautious, with Wall Street expressing skepticism about Tesla&#8217;s growth projections.



The Amazon Trade



On the same day, Ark Invest increased its stake in Amazon.com Inc. by purchasing 41,338 shares through ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) and ARKW. This acquisition, totaling approximately $9.8 million, is based on Amazon&#8217;s closing price of $238.15. Notably, Ark had purchased <a href="https://www.benzinga.com/25/01/43256648/cathie-wood-swoops-in-to-buy-amd-shares-amid-deepseek-tech-upheaval-dumps-tesla-stock-worth-8-1-million">$1.76 million worth of Amazon shares</a> just a day prior. The Amazon stock purchases has been a continuing trend with the Wood-led firm adding another $8.9 million worth of shares in early January.



Other Key Trades:



<ul>
<li>Sold 446,148 shares of Adyen NV (ADYEY) through ARKW.Sold 25,500 shares of Rocket Lab USA Inc (RKLB) through ARKQ.Sold 22,830 shares of Roblox Corp (RBLX) through ARKK.</li>



<li>Bought 69,250 shares of Absci Corp (ABSI) through ARKG.Bought 8,210 shares of Qualcomm Inc (QCOM) through ARKW.</li>
</ul>



Image via Shutterstock



Read Next:



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<li><a href="https://www.benzinga.com/25/01/43271197/royal-caribbean-cruises-posts-upbeat-earnings-joins-brighthouse-financial-invesco-boeing-and-other-big-stocks-moving-higher-on-tuesday">Royal Caribbean Cruises Posts Upbeat Earnings, Joins Brighthouse Financial, Invesco, Boeing And Other Big Stocks Moving Higher On Tuesday</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

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Cathie Wood Dumps Tesla Stock Ahead Of Q4 Earnings, Ark Invest Loads Up On Amazon

A federal judge in the District of Columbia on Tuesday afternoon temporarily blocked an executive order given by President Donald Trump that imposed a freeze of all federal grants and loans, putting $3 trillion in funding in jeopardy and <a href="https://www.benzinga.com/25/01/43290381/trumps-federal-spending-freeze-puts-3-trillion-in-limbo-threatens-industries-like-clean-energy-defense-healthcare">entire industries on edge.&nbsp;</a>



The Details: According to a New York Times <a href="https://www.nytimes.com/2025/01/28/us/politics/trump-funding-freeze-blocked.html">report</a>, Judge Loren AliKhan blocked the order late Tuesday afternoon in response to a lawsuit filed by Democracy Forward. The lawsuit argued the directive violated the First Amendment and the Administrative Procedures Act governing the issuance of executive orders. 



Judge AliKhan said she will issue a more permanent decision on Feb. 3 



Read Next: <a href="https://www.benzinga.com/news/large-cap/25/01/43106379/trump-reverses-bidens-ai-policies-on-day-1-what-it-means-for-tech-giants-nvidia-amd-alphabet">Trump Reverses Biden&#8217;s AI Policies On Day 1: What It Means For Tech Giants Nvidia, AMD, Alphabet&nbsp;</a>



Skye Perryman, Democracy Forward's president and chief executive, commented on the judge's decision in a statement.&nbsp;



"We are grateful for this administrative stay to allow our clients time to sort through the chaos created by the Trump administration's hasty and ill-advised actions," Perryman said, per the New York Times. 



Trump's directive, issued Monday by the Office of Management and Budget, required federal agencies to halt disbursements while programs were reviewed for alignment with Trump administration policies and was slated to go into effect on Tuesday at 5 p.m. ET.&nbsp;



But, early Tuesday, state Medicaid programs reported the federal reimbursement portals had been locked. State officials said funding for community health centers, food for families, housing assistance, preschools and disaster relief was in limbo.



According to the New York Times, the White House and OMB said on Tuesday afternoon the funding freeze did "not apply across-the-board" and affected programs on D.E.I. efforts and funding for organizations "that undermine the national interest."



Stocks To Watch: It remains unclear exactly which industries could be affected by Trump's order or if the judge will elect to block it permanently on Feb 3.&nbsp;



However, Medicaid funding had reportedly been stopped at least temporarily. HCA Healthcare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HCA#NYSE">HCA</a>) and Universal Health Services Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UHS#NYSE">UHS</a>) stocks fell on Tuesday. 



Large defense contractors like RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) and Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) also face a growing degree of uncertainty regarding government funding and contracts.



Green industries including solar energy could also be on the chopping block for federal funding due to Trump administration policies. Sunnova Energy International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOVA#NYSE">NOVA</a>) dropped 12% Tuesday and Sunrun, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>) fell 9.2% amid the uncertainty on future policy changes. 



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/25/01/43287988/microsoft-q2-preview">Microsoft Q2 Earnings Preview: Street &#8216;Too Optimistic&#8217; On Near-Term AI Returns?&nbsp;</a></li>
</ul>



Photo: Shutterstock

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Judge Blocks Trump's Order To Freeze Federal Grant Money

The fourth-quarter earnings season is in full swing, and <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43054693/magnificent-7-earnings-hinge-on-ai-payoff-analyst-flags-top-risks">all eyes are on the Magnificent 7,</a> a group of tech giants that enjoy the market&#8217;s attention, thanks in part to the ongoing artificial intelligence boom and their dominance in this space.



These stocks are Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>). <a href="https://www.benzinga.com/etfs">ETFs that focus</a> heavily on these stocks have also become attractive options for investors seeking diversified exposure ahead of their earnings results.



If you're looking to ride the earnings wave, here are three ETFs worth considering:



The Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) was the first ETF offering equal-weight exposure to these seven stocks. It has an expense ratio of 0.29% and an AUM of $639.75 million. The ETF has grown 61% in the last year.



For a slightly broader yet targeted approach, the MicroSectors FANG+ ETN (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FNGS#NYSE">FNGS</a>) could be a good choice. The fund tracks the NYSE FANG+ Index and maintains a 10% share in each of the seven stocks. The expense ratio is 0.58%.



Meanwhile, the Vanguard Mega Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGK#NYSE">MGK</a>) allocates around 59% of its assets to the Magnificent 7. The ETF has $21.60 billion in AUM and an expense ratio of 0.06%, making this a pocket-friendly option.



<h1 class="wp-block-heading">What's Next For The Magnificent 7?</h1>



As the earnings season progresses, the Magnificent 7 stocks are expected to report earnings growth of 18% in 2025, marking a slowdown, according to a December 2024 report by Bloomberg. 



Tesla, Microsoft and Meta Platforms will kick off earnings with reports scheduled after market close on Wednesday. Apple follows Thursday, while Alphabet and Amazon are set to announce results on Feb. 4 and Feb. 6, respectively. Nvidia is likely to release its earnings later in February.



<a href="https://www.benzinga.com/25/01/43232316/deepseek-jitters-shatter-us-tech-stocks-wipe-out-12-trillion-on-wall-street-analyst-eyes-four-chinese-giants-set-" target="_blank" rel="noreferrer noopener">Hangzhou, China-based AI startup</a> DeepSeek launched a new AI model that poses a challenge to U.S. competitors, including Nvidia&#8217;s core business. Industry experts like venture capitalist Marc Andreessen called this moment a "Sputnik moment" for U.S. AI companies as this could be a ground-breaker in the AI space, reported Reuters.



Nvidia shares rebounded Tuesday after analysts called the&nbsp;market&#8217;s reaction an &#8220;overreaction.&#8221; Analysts believe advancements like these could drive even more investment in AI, which can be beneficial for companies including Nvidia. Moreover, Nvidia has already said that DeepSeek's inference requires &#8220;significant numbers of Nvidia GPUs and high-performance networking."



See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43283732/tech-rebounds-after-black-monday-nvidia-rallies-6-gm-plummets-whats-driving-marke">Tech Rebounds After Black Monday, Nvidia Rallies 6%, GM Plummets: What&#8217;s Driving Markets Tuesday?</a>



Tesla has faced mixed fortunes recently. The EV maker reclaimed its trillion-dollar market cap thanks to a favorable policy environment. Yet it hit a roadblock with its fourth-quarter delivery numbers. The company missed estimates and reported its first-ever year-over-year decline in full-year vehicle deliveries. 



Adding to the challenges, recent rollbacks of pro-EV policies weighed on Tesla's stock, which fell 2.5% year-to-date. Despite these shortfalls, Tesla's leadership in EV scale and technology gives it an edge, particularly in markets where tariffs might restrict cheaper imports from Chinese competitors.



Microsoft continues to shine as a key AI forerunner with substantial investments in data centers and AI development. The company expects $10 billion in AI-related revenues next quarter.



Meta looks promising, with analysts raising their price targets ahead of its earnings release. Wedbush and BofA Global Securities now peg Meta's stock at $700 and $710, respectively. The social media company expects to generate revenues of $45-$48 billion in the fourth quarter but also anticipates increased spending on AI and infrastructure projects. This might shrink the margins.



Despite rolling out new AI-driven applications late last year, Apple has struggled to gain momentum, particularly in international markets. Its latest iPhone 16 has seen muted sales. Jefferies recently downgraded Apple to Underperform. Looking ahead, Apple expects low to mid-single-digit sales growth in its fiscal first quarter.



Alphabet is currently staring at antitrust lawsuits and increasing competition in the generative AI space. Analysts remain concerned about the long-term impact of AI on Alphabet's core search business.



Amazon continues to dominate e-commerce and cloud computing, while its AI business is growing rapidly. The company's fourth-quarter revenues are projected to land between $181.5 billion and $188.5 billion. Amazon's investments in AI infrastructure, including data centers and custom chips, position it well for sustained growth in this sector.



See Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/upgrades/25/01/43284333/nvidia-positioned-for-400-billion-ai-boom-with-advanced-gpus-new-product-launches-drivin">Nvidia Positioned For $400 Billion AI Boom With Advanced GPUs, New Product Launches Driving Revenue Growth, Say Analysts</a></li>
</ul>



Photo: Shutterstock.

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Magnificent 7 Earnings Ahead: 3 ETFs To Ride The Wave

Electric vehicle company Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) is likely to put an emphasis on future new models and technology progress for autonomous vehicles when the company reports fourth-quarter financial results after <a href="https://www.benzinga.com/earnings">market close Wednesday.</a>



Earnings Estimates: Analysts expect Tesla to report fourth-quarter revenue of $27.13 billion, up from $25.17 billion in last year's fourth quarter, according to data <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012825&amp;t=be2bearmibe3na1">from Benzinga Pro.</a>



The company has missed analyst revenue estimates in four of the last five quarters and six of the last 10 quarters overall.



Analysts expect Tesla to report fourth quarter earnings per share of 74 cents, up from 71 cents per share in last year's fourth quarter. The company has missed analyst earnings per share estimates in four of the last five quarters.



Tesla <a href="https://www.benzinga.com/trading-ideas/movers/25/01/42766117/tesla-stock-tumbles-on-q4-deliveries-whats-going-on">previously announced </a>its fourth-quarter vehicle production and delivery figures. The company produced 459,445 vehicles and delivered 495,570 vehicles in the quarter. While the deliveries were a record in the fourth quarter, the company's 1.79 million vehicles delivered in 2024 marked a year-over-year decline from 1.81 million in 2023. This was the first annual deliveries decline in company history.



Read Also:<a href="https://www.benzinga.com/news/25/01/42986863/us-electric-vehicle-sales-hit-record-1-3-million-units-in-2024-despite-tesla-declines-top-10-bestsel"> US Electric Vehicle Sales Hit Record 1.3 Million Units In 2024, Despite Tesla Declines: Top 10 Bestselling Models</a>



What Analysts Are Saying: Analysts were mixed<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42777950/teslas-first-sales-drop-splits-wall-street-2025-will-be-the-prove-it-year"> on the short-term outlook</a> for Tesla after the company's fourth-quarter delivery report. They continue to show questions for the short term with many bullish outlooks on the EV stock for the long term.



Goldman Sachs analyst Mark Delaney <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43246903/tesla-analysts-top-5-items-to-watch-in-q4-earnings-will-refreshed-model-y-new-evs-help-growth">recently highlighted</a> the Model Y update, automotive market share and a consumer survey in a new investor note.



The analyst maintained a Neutral rating with a price target of $345.



&#8220;Mix and how fast Tesla ramps up production of the refreshed version will help determine the effect on blended ASPs. We believe the new version offers several good enhancements," Delaney said of the Model Y refresh.



Ahead of Tesla&#8217;s fourth-quarter financial results, Delaney highlighted five of the top items to watch.



<ol start="1">
<li>Automotive non-GAAP gross margins</li>



<li>Vehicle delivery outlook for 2025</li>



<li>Progress with FSD and AI-related efforts</li>



<li>Growth in other segments, including Services and Energy</li>



<li>Progress with Optimus and expectations on ramp timing</li>
</ol>



&#8220;We believe a key debate in the market will be whether Tesla can grow more meaningfully in 2025/2026, driven by a refreshed Model Y and a new lower-cost model or models,&#8221; Delaney added.



Morgan Stanley analysts said <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43259982/tesla-earnings-delivery-outlook-model-y-ramp-up-optimus-bot-in-focus-say-analysts">the key topic </a>for Tesla's earnings report and conference call will be if the company is sticking with a delivery growth target of 20% to 30% for 2025. The analysts said growth of 10% to 20% is more likely with pressures on the EV market, increased competition for the sector in China and the potential of federal tax credits going away.



The analysts said production ramp-up of the Model Y refresh, FSD progress and any updates on the Optimus humanoid bot will also be key topics to watch.



Morgan Stanley has an Overweight rating on Tesla and $430 price target.



On the other side of the bull case for Tesla is Bank of America analyst John Murphy who <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42856115/tesla-analyst-on-high-stakes-future-optimus-robotaxi-fsd-have-potential-but-execution-risks-loom">downgraded Tesla</a> from Buy to Neutral earlier this month and raised the price target from $400 to $490.



Murphy shared a Tesla sum-of-the-parts valuation and what could have the highest impact on the future of the company.



Tesla has long-term catalysts, but the rise in the stock price in 2024 could put valuation into question, Murphy said in the note. &#8220;Valuation captures much of long-term potential from autos, robotaxi, other and execution risk is high.&#8221; 



Murphy added that there is still upside to Tesla stock, but the price increase limits the long-term potential.



Tesla&#8217;s robotaxi segment is called the biggest opportunity by Murphy, a segment that he believes could account for nearly 50% of the company&#8217;s valuation and be worth $420 billion in the U.S. and over $800 billion globally in the future.



Key Items to Watch: Delivery guidance for 2025 remains the biggest item for most analysts and investors. Outside of that there are multiple areas that people will be watching Thursday.



This includes the potential end of the $7,500 federal tax credit for EVs. Tesla CEO Elon Musk, who supported Donald Trump in the 2024 election, has supported this potential end as it could be good for his company and bad for competitors.



Analysts may try to get Musk to comment on the timing of the end of the credit and if it could lead to a short-term demand spike.



As a close ally of Trump, another topic could be autonomous vehicle testing on roads. Trump <a href="https://www.benzinga.com/general/politics/24/10/41298125/maybe-musk-missed-the-memo-trumps-plan-to-ban-autonomous-vehicles-could-sour-friendship">previously said he </a>would ban autonomous vehicles from roads, which could cause harm to Tesla. An update on where things stand would likely be well received by investors if Trump has reversed his stance.



With the promise of new models in 2025, investors and analysts will also be looking for commentary on the timing of this and any hints at what this means.



TSLA Price Action: Tesla stock is down 0.3% Wednesday versus a 52-week trading range of $138.80 to $488.54. Tesla stock is up 108% over the last year, with the majority of gains coming after Trump won the election.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/10/41501607/tesla-q3-earnings-highlights-eps-beat-revenue-miss-shares-climb-on-2025-timeline-for-lower-cost-evs">Tesla Q3 Earnings Highlights: EPS Beat, Revenue Miss, Shares Climb On 2025 Timeline For Lower-Cost EVs</a></li>
</ul>



Photo created using artificial intelligence via MidJourney.

Analyst Color

Price Target

Previews

Reiteration

Analyst Ratings

Tesla Q4 Earnings Preview: 2025 Delivery Growth, FSD, Model Y Refresh, New Vehicles Among Key Topics

Starbucks Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) reported financial results for the first quarter after the market close on Tuesday. Here&#8217;s a look at what&#8217;s been brewing at Starbucks over the <a href="https://www.benzinga.com/pressreleases/25/01/b43286976/starbucks-reports-q1-fiscal-year-2025-results">past few months</a>.



Q1 Earnings: Starbucks reported first-quarter revenue of $9.4 billion, beating the&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a>&nbsp;of $9.32 billion. The coffee giant reported first-quarter earnings of 69 cents per share, beating analyst estimates of 66 cents per share, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Comparable store sales declined 4% globally, driven by a 6%&nbsp;decline in comparable transactions, partially offset by a&nbsp;3%&nbsp;increase in average ticket. Comparable store sales fell 4% in North America, 4% internationally and 6% in China during the quarter.



Active loyalty rewards memberships increased to 34.6 million in the quarter, up 1% on a year-over-year basis, and up 2% from the fourth quarter of 2024. Starbucks said U.S. gift card loads reached $3.5 billion. The company opened 377 net new stores in&nbsp;the first quarter and ended the period with 40,576 total locations.



&#8220;While we&#8217;re only one quarter into our turnaround, we&#8217;re moving quickly to act on the &#8216;Back to Starbucks&#8217; efforts and we&#8217;ve seen a positive response,&#8221; said&nbsp;Brian Niccol, chairman and CEO of Starbucks.



&#8220;We believe this is the fundamental change in strategy needed to solve our underlying issues, restore confidence in our brand and return the business to sustainable, long-term growth.&#8221;



Don&#8217;t Miss: <a href="https://www.benzinga.com/general/restaurants/25/01/43232762/starbucks-cracks-down-on-freeloaders-as-sales-slide-stock-stays-bullish-ahead-of-q1-earnings">Starbucks Cracks Down On Freeloaders As Sales Slide, Stock Stays Bullish Ahead Of Q1 Earnings</a>



Starbucks suspended its guidance for fiscal year 2025 last quarter, citing the company's "CEO transition coupled with the current state of the business." Niccol took over as chief executive of Starbucks in September.



Starbucks' board declared a cash dividend of 61 cents per share. The&nbsp;dividend is payable on Feb. 28 to shareholders of record as of Feb. 14.



Management will further discuss the quarter on a conference call with analysts and investors at 5 p.m. ET.



SBUX Price Action: <a href="https://www.benzinga.com/quote/SBUX" target="_blank" rel="noreferrer noopener">Starbucks shares</a> were up 3.39% in after-hours, trading at $103.79 at the time of publication Tuesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43283732/tech-rebounds-after-black-monday-nvidia-rallies-6-gm-plummets-whats-driving-markets-tuesday">Tech Rebounds After Black Monday, Nvidia Rallies 6%, GM Plummets: What&#8217;s Driving Markets Tuesday?</a></li>
</ul>



Photo: Shutterstock.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534; WATCH LIVE: Starbucks Q1 2025 Earnings Call &#x7C; $SBUX" width="500" height="281" src="https://www.youtube.com/embed/K1y2U1d2sjQ?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>

Earnings

Restaurants

After-Hours Center

SBUX

Starbucks Q1 Earnings: Revenue Beat, EPS Beat, Memberships Up 1%, 'Positive Response' To Turnaround Efforts

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) is set to report fourth-quarter earnings on Wednesday. Wall Street expects 74 cents in EPS and $27.13 billion in revenues when the company reports<a href="https://www.benzinga.com/calendars/earnings?tickers=TSLA" target="_blank" rel="noreferrer noopener"> after market hours</a>.



The stock is up 106.68% over the last year and down 1.41% year-to-date.



<h1 class="wp-block-heading">Tesla Stock Investors Concerns Ahead Of Q4 Earnings</h1>



As Tesla gears up to report its fourth-quarter earnings on Wednesday, investors are watching closely for clarity on its growth trajectory. CEO Elon Musk has promised a 30% sales increase in 2025, but Wall Street remains skeptical about that projection.



The recent refresh of the aging <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43194774/teslas-model-y-glow-up-arrives-in-time-for-q4-earnings-will-it-be-enough">Model Y</a> aims to reignite demand, but <a href="https://qz.com/tesla-q4-earnings-elon-musk-evs-trump-fsd-optimus-stock-1851748628">many</a> believe a cheaper Tesla, dubbed &#8220;Model Q,&#8221; is crucial. 



Concerns still loom over Musk's growing commitments beyond Tesla, including his involvement in politics and multiple ventures. With President Donald Trump's potential rollback of EV incentives and the uncertain timeline for Tesla's robotaxi and Optimus projects, investor sentiment remains a mix of excitement and caution.



Let&#8217;s look at what the charts indicate for Tesla stock and how the stock currently maps against Wall Street estimates.



Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43259982/tesla-earnings-delivery-outlook-model-y-ramp-up-optimus-bot-in-focus-say-analysts">Tesla Earnings: Delivery Outlook, Model Y Ramp-Up, Optimus Bot In Focus, Say Analysts</a>



<h1 class="wp-block-heading">Tesla Stock Chart Bullish With Selling Pressure Weighing In</h1>



Tesla stock is caught between short-term selling pressure and long-term bullish momentum.



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012825&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="493" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28133252/Screenshot-2025-01-28-at-11.57.39-PM.png" alt="" class="wp-image-754155" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28133252/Screenshot-2025-01-28-at-11.57.39-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/28133252/Screenshot-2025-01-28-at-11.57.39-PM-300x235.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012825&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>



The stock hovers at $394.11 — just above its 50-day SMA (simple moving average) of $393.47 but lags behind its eight-day and 20-day SMAs of $411.22 and $407.77, respectively.



The short-term trend leans moderately bearish as selling pressure weighs in, but the bigger picture still favors the bulls. With the 200-day SMA sitting far below at $258.66 and a MACD (moving average convergence/divergence) of 2.30 flashing bullish signals, Tesla's long-term trajectory remains intact.



An RSI (relative strength index) of 46.16 suggests there&#8217;s room to run before hitting overbought territory, meaning investors eyeing an entry may find this dip appealing while short-term traders should tread cautiously.



<h1 class="wp-block-heading">Tesla Analysts See 16% Upside</h1>



Ratings &amp; Consensus Estimates:<a href="https://www.benzinga.com/quote/TSLA/analyst-ratings" target="_blank" rel="noreferrer noopener"> The consensus analyst rating</a> on Tesla stock stands at Neutral currently with a price target of $308.40. Recent analyst ratings from Wedbush, Piper Sandler and Barclays imply a 16.09% upside for Tesla stock, with an average price target of $458.33.



TSLA Price Action: Tesla stock was trading flat at $398.42 at publication Tuesday.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43259304/trumps-proposed-corporate-tax-cuts-could-boost-teslas-fy25-eps-by-4-says-analyst">Trump&#8217;s Proposed Corporate Tax Cuts Could Boost Tesla&#8217;s FY25 EPS by 4%, Says Analyst</a></li>
</ul>



Photo: Courtesy Tesla

Long Ideas

Technicals

Tesla Q4 Earnings Ahead: Can The Stock Keep Its Rally Alive?

The White House has ordered a temporary freeze on all federal grants and loans, putting $3 trillion in funding under scrutiny and setting the stage for a legal and political showdown over the congressional power of the purse that could heavily impact a <a href="https://www.benzinga.com/markets">wide range of industries.</a>



The directive, issued Monday by the Office of Management and Budget and received by several media outlets, requires all federal agencies to halt disbursements while programs are reviewed for alignment with President Donald Trump's policy priorities.



This includes halting new awards, existing payment and funding for projects until reviewed.



The exact financial impact of the order remains uncertain. Budget experts cited <a href="https://www.washingtonpost.com/business/2025/01/28/trump-spending-freeze-upends-washington-triggering-legal-threats-delays/">by the Washington Post </a>estimate at least tens of billions of dollars are at stake, though the White House directive suggests the total could be significantly higher.



Of the almost $10 trillion spent by the federal government in fiscal 2024, more than $3 trillion was federal financial assistance, Matthew Vaeth, acting director at the OMB, said in the memorandum.



&#8220;Financial assistance should be dedicated to advancing Administration priorities,&#8221; Vaeth said, adding that &#8220;the use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.&#8221;



The White House said that Social Security and Medicare remain untouched. The sweeping pause threatens funding for universities, nonprofits, contractors and private companies that depend on federal assistance.



&#8220;Nothing in this memo should be construed to impact Medicare or Social Security benefits,&#8221; the memo said. 



The immediate focus will be on how agencies handle exemptions. The OMB memo allows federal departments to request case-by-case approvals, which means some funding may still flow, but the process is likely to be slow and politically charged.



Federal agencies have until Feb. 10, 2025, to provide OMB with detailed reports outlining which programs, projects, and activities are affected by the funding pause.



<h3 class="wp-block-heading">Legal, Political Showdown Over Federal Funds </h3>



The move is triggering legal challenges from nonprofits and Democratic-led states.



Within hours of the announcement, lawsuits were filed in federal courts in New York, Illinois and Oregon, arguing that Trump does not have the authority to withhold congressionally approved spending.



Senate Minority Leader Chuck Schumer was among the first to push back, saying Congress-approved investments are legally mandated and asserting the president lacks the authority to override the Impoundment Control Act of 1974, which restricts unilateral executive control over federal funds.



Trump has long argued that the 1974 law is unconstitutional, stating that past presidents had far more discretion over spending before its passage.



<h3 class="wp-block-heading">Which Industries Could Face Trouble?</h3>



Some of the hardest-hit sectors could include clean energy, defense, health care and education, where federal dollars have played a crucial role in driving investment and growth in recent years.



Trump's OMB memo explicitly targeted climate initiatives and green energy programs. Shares of solar and renewable energy companies were among the hardest hit following the federal funding freeze.



The Invesco Solar ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAN#NYSE">TAN</a>) and the Invesco Wilderhill Clean Energy ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PBW#NYSE">PBW</a>) fell by 2% and 1.3%, respectively, on Tuesday. 



Sunnova Energy International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOVA#NYSE">NOVA</a>) dropped 12%, Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>) fell 9.2% and SolarEdge Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>) declined 5%. 



Defense contractors such as Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) and Northrop Grumman (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) may also see rising uncertainty. While military spending is unlikely to be cut outright, several defense contractors rely on federal grants for research and development. 



The impact on health care remains unclear. While Medicare is shielded, Medicaid funding — which supports hospitals, managed care providers and pharmaceutical companies — could be at risk.



HCA Healthcare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HCA#NYSE">HCA</a>) and Universal Health Services Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UHS#NYSE">UHS</a>) fell by 1% and 1.4%, respectively, while Tenet Healthcare Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>) showed resilience Tuesday. 



Read Next:



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43281252/fed-set-to-signal-no-rush-to-cut-rates-as-wall-street-awaits-policy-clarity">Fed Set To Signal No Rush To Cut Rates As Wall Street Awaits Policy Clarity</a></li>
</ul>



Photo via Shutterstock.

Large Cap

Econ #s

SEDG

Trump's Federal Spending Freeze Puts $3 Trillion In Limbo, Threatens Industries Like Clean Energy, Defense, Health Care

The Federal Reserve is widely expected to keep interest rates steady at 4.25%-4.50% on Wednesday, but for Wall Street, the <a href="https://www.benzinga.com/markets">stakes couldn't be higher.</a>



After a brutal tech selloff erased trillions in market value on Monday and President Donald Trump ramped up pressure for immediate rate cuts last week, investors are desperate for clarity on when the central bank will move next.



Markets are hoping for a dovish signal, but Powell may not deliver it. Inflation risks are creeping back, economic growth remains solid, and policymakers appear content to take their time before making further adjustments.



<h3 class="wp-block-heading">No Rush To Cut: Powell To Play It Safe</h3>



Since December, the data flow has justified a more hawkish stance from the Fed. The labor market remains strong, inflation is stabilizing above target, and growth is defying expectations of a slowdown.



As of Jan. 28, the Atlanta Fed&#8217;s GDPNow model estimates fourth-quarter 2024 real economic growth at an annualized 3.2%, up from 3.0% on Jan. 17. This marks a slight acceleration from the 3.1% growth recorded in the third quarter and 3.0% in the second quarter.



&#8220;Federal Reserve officials this week will leave the door open to resuming interest rate cuts as soon as March but will also signal a higher bar for reductions amid signs that inflation could be stuck uncomfortably above its target,&#8221; wrote Market News analyst Pedro da Costa.



&#8220;The January FOMC meeting is mostly a placeholder that should see the Fed stay on hold, markets expect little from the meeting,&#8221; wrote Bank of America economist Aditya Bhave in a note this week.



&#8220;We expect Chair Powell to retain maximal optionality on the March policy decision at his press conference,&#8221; Bhave added.



Bank of America remains &#8220;comfortable&#8221; that the Fed rate-cutting cycle has ended, positioning itself as one of Wall Street's most hawkish investment banks.



<h3 class="wp-block-heading">Market Expectations: When Will The Fed Deliver The Next Cut</h3>



Market-based interest rate expectations tracked by fed futures currently indicate a 93% probability that the Federal Reserve will deliver two 25-basis-point cuts by the end of 2025.



The likelihood of a rate cut at the March meeting stands at 30%, according to the CME FedWatch tool, while odds for a move in May are near 50-50. 



A second cut, however, may not come until late October, with market-implied probabilities assigning a 70% chance to that timeline.



Betting markets, as tracked by the CFTC-regulated platform Kalshi, also align with expectations of two rate cuts in 2025.



For those speculating on alternative scenarios, a single rate cut, currently priced at 23% odds, offers a $4 payout per dollar wagered. A more aggressive bet on no cuts at all, a view backed by Bank of America and carrying 13% probability, could yield $6 for every dollar invested.



<iframe loading="lazy" src="https://kalshi.com/external-widgets/events/KXRATECUTCOUNT-25DEC31?color_scheme=light&#038;widget_size=medium&#038;variant=a&#038;ids=KXRATECUTCOUNT-25DEC31-T2&#038;ids=KXRATECUTCOUNT-25DEC31-T1&#038;ids=KXRATECUTCOUNT-25DEC31-T3" width="488px" height="196px" style="border:0"></iframe>



<h3 class="wp-block-heading">Markets Hang In The Balance After Brutal Tech Selloff</h3>



For traders, this week's Fed meeting follows a bloodbath in the stock market. 



On Monday, a massive tech selloff erased over $1.2 trillion in market value, triggered by the launch of China's DeepSeek, an open-source AI model that reportedly outperformed OpenAI&#8217;s ChatGPT in several key benchmarks.



The shockwave hit Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) particularly hard, sending the stock down by nearly 18% and wiping out about $600 billion in company capitalization.



Memories of the Fed-induced December selloff are still fresh. Back then, the VIX spiked 70% in a single day after Powell signaled a "new phase" in monetary policy, cutting projected rate cuts from four to two and raising inflation forecasts.



Now, investors are focused on avoiding another market setback caused by the Fed.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/management/25/01/43274796/jensen-huang-loses-20b-in-wealth-how-deepseek-hit-nvidia-stock-and-worlds-richest-people">Jensen Huang Loses $20B In Wealth: How DeepSeek Hit Nvidia Stock And World&#8217;s Richest People</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Macro Economic Events

Economics

Federal Reserve

Fed Set To Signal No Rush To Cut Rates As Wall Street Awaits Policy Clarity

Social media company Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) could cover topics such as politics, the pending TikTok ban and AI spending when the company reports fourth-quarter financial results after <a href="https://www.benzinga.com/earnings">market close Wednesday.</a>



Here are the analyst earnings estimates, latest analyst ratings and comments, and key items to watch in the report.



Earnings Estimates: Analysts expect Meta Platforms to report fourth-quarter revenue of $46.99 billion, up from $40.11 billion in last year's fourth quarter, according to data<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012825&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company has beaten analyst estimates for revenue in nine straight quarters.



Analysts expect the company to report fourth-quarter earnings per share of $6.77, up from $5.33 in last year's fourth quarter. The company has beaten analyst estimates for earnings per share in seven straight quarters.



Guidance<a href="https://www.benzinga.com/news/earnings/24/10/41637326/meta-platforms-q3-earnings-revenue-beat-eps-beat-daily-actives-up-5-strong-momentum-in-ai"> from the company </a>calls for fourth-quarter revenue to be in a range of $45 billion to $48 billion.



Read Also: <a href="https://www.benzinga.com/general/social-media/25/01/43201978/meta-suspends-abortion-pill-accounts-delete-facebook-searches-near-5-year-peak">Meta Suspends Abortion Pill Accounts, &#8216;Delete Facebook&#8217; Searches Near 5-Year Peak</a>



 What Analysts Are Saying: Needham analyst Laura Martin raised financial estimates for Meta Platforms figures including revenue and earnings per share in a new investor note.



"Based on our conversations over the past two weeks, we think Meta benefitted from a stronger ad market, and expanding margins in 4Q24," Martin said.



The analyst reiterated an Underperform rating with no price target.



Martin said the conversations took place at CES and the Needham Growth Conference in January.



"We expect this trend to continue into FY25E and FY26E, and we raise estimates. Where we may be wrong is if META hires thousands of AI and genAI engineers to pursue its diverse portfolio of growth initiatives."



Bank of America analyst Justin Post said Meta Platforms <a href="https://www.benzinga.com/general/social-media/25/01/42991174/meta-platforms-analyst-expects-strong-momentum-in-q4-to-continue-in-2025">could benefit </a>from strength in advertisement and improved AI models for ad targeting in a recent note.



The analyst maintained a Buy rating on Meta with a price target of $710.



Goldman Sachs analyst Eric Sheridan <a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43244183/meta-future-growth-backed-by-ai-advancements-and-strong-ecommerce-performance-analyst-says">also highlighted Meta's</a> advertising opportunities in a recent note.



The analyst maintained a Buy rating and raised the price target from $630 to $688.



Sheridan said Meta could continue its advertising momentum in 2025 with increased ad load on Reels and untapped potential in areas like click-to-message ads and advertising on WhatsApp and Messenger.



"Based on our advertising checks, Meta continues to see strong momentum in its core advertising business and should drive above-industry topline growth over the next several quarters," Sheridan said.



Here are other <a href="https://www.benzinga.com/quote/META/analyst-ratings">recent analyst ratings</a> on Meta and their price targets:



<ul>
<li>JMP Securities: Reiterated Market Outperform rating, $750 price target</li>



<li>Rosenblatt: Maintained Buy rating, $811 price target</li>



<li>Wedbush: Maintained Outperform rating, raised price target from $680 to $700</li>



<li>Cantor Fitzgerald: Reiterated Overweight rating, lowered price target from $730 to $720</li>



<li>Raymond James: Maintained Strong Buy rating, raised price target from $675 to $725</li>
</ul>



Key Items to Watch: There are many topics that investors and analysts will likely be drawn towards in Meta's earnings report and conference call.



Politics could be a big one with Meta's recent announcement that it <a href="https://www.benzinga.com/25/01/42851889/meta-ditches-fact-checking-for-community-notes-zuckerberg-says-opportunity-to-restore-free-expression">was shifting away</a> from content moderation to a "community notes" style used by X. Meta CEO Mark Zuckerberg also attended Donald Trump's inauguration and the company donated to the inauguration fund.



Reports of some accounts getting suspended over content and people being forced to follow Trump and J.D. Vance could be among the topics and questions. Investors and analysts will also want to see that the company didn't lose users in the fourth quarter due to politics.



The pending ban of TikTok could be another topic with reports that Meta is trying to lure away TikTok content creators to Facebook and Instagram. The ban could be good for Meta and the company will likely be questioned on how it could benefit and whether it considered trying to buy the platform or partner on a purchase.



Capex could be another item to watch with some quarters seeing Meta raise its full-year guidance for spending and spooking investors.



Zuckerberg <a href="https://www.benzinga.com/trading-ideas/movers/25/01/43196266/whats-going-on-with-meta-shares-friday-2">recently said</a> that Meta will dedicate $60 billion to $65 billion in capital spending on the company's AI efforts including a new data center. Investors will likely not want to see spending guidance too high.



Comments on layoffs could also be a topic to watch and fits into the capex with buyouts and other costs associated with lowering the headcount.



META Price Action: Meta stock is up 2.53% to $676.60 on Tuesday at publication. Shares hit a new 52-week high of $680.95 earlier Tuesday. The stock is up 69% over the last year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/social-media/25/01/42833727/dana-white-wanted-elon-musk-mark-zuckerberg-in-cage-fight-now-hes-on-metas-board-of-directors">Dana White Wanted Elon Musk, Mark Zuckerberg In Cage Fight, Now He&#8217;s On Meta&#8217;s Board Of Directors</a></li>
</ul>



Photo: Poetra.RH via Shutterstock

Social Media

Meta Q4 Earnings Preview: Analysts Say Advertising Strength Could Drive 'Above-Industry Topline Growth'

Tech stocks attempted a rebound after Monday's devastating crash triggered by DeepSeek, as investors show interest in dip-buying <a href="https://www.benzinga.com/markets/equities/25/01/43261206/nvidia-broadcom-gain-over-5-as-tech-giants-rebound-after-monday-sell-off-whats-going-on">the hardest-hit names.</a>



Shares of Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) climbed by over 6% after plunging 17% and erasing nearly $600 billion in market capitalization the previous day, following a series of reassuring comments suggesting that DeepSeek's development may not be as detrimental to the semiconductor giant as initially feared.



The Nasdaq 100 gained 1.6% after a 2.9% drop the day before, outperforming other major indices.



Notably, General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) tumbled 8.5%, despite slightly beating Street expectations on earnings, as the automaker failed to provide updates on the potential impact of Trump tariffs, leaving investors in limbo.



The dollar strengthened after multiple overnight reports indicated that Treasury Secretary Scott Bessent is considering universal tariffs of 2.5%, with gradual increases up to 20%, allowing countries room to negotiate with President Donald Trump&#8217;s administration. Treasury yields rose about 3 basis points across the curve, reflecting slight investor nervousness and inflation concerns in the bond market.



In macro news, the Conference Board&#8217;s consumer confidence retreated in January, with the index dropping 5.4 points to 104.1. All five components of the index weakened, though the sharpest decline came from consumers&#8217; assessments of the current economic situation.



Gold climbed 0.8% to $2,760 per ounce, sitting less than one percentage point away from record highs.



In commodities, natural gas extended its sharp decline, down 5.4% after shedding over 7% on Monday, while oil remained steady at $73 per barrel.



The crypto market stabilized after Monday's tech-driven turmoil weighed on sentiment toward digital assets. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) has reclaimed the $102,000 level, up 2.9%.



<h3 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>Nasdaq 100</td><td>21,474.80</td><td>1.6%</td></tr><tr><td>S&amp;P 500</td><td>6,071.78</td><td>1.0%</td></tr><tr><td>Dow Jones</td><td>44,932.78</td><td>0.5%</td></tr><tr><td>Russell 2000</td><td>2,281.94</td><td>-0.1%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 1:18 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012725&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 1% to $604.72.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.4% higher to $449.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1.6% to $511.88.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) flattened at $226.48. </li>



<li>The&nbsp;Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 2.4%; the&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 1.9%.</li>
</ul>



<h3 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h3>



<ul>
<li>Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>) rallied over 13% to fresh record highs after stronger than expected quarterly reports. </li>



<li>Other companies reacting to quarterly earnings included Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), down 7.6%, Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is up 3.6%, RTX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) up 2.7%, Kimberly-Clark Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMB#NYSE">KMB</a>) is down 0.9%.</li>



<li>Companies slated to report earnings after the close include Starbucks Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NYSE">SBUX</a>) and Chubb Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>). </li>
</ul>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43281252/fed-set-to-signal-no-rush-to-cut-rates-as-wall-street-awaits-policy-clarity">Fed Set To Signal No Rush To Cut Rates As Wall Street Awaits Policy Clarity</a></li>
</ul>



Photo: Shutterstock

Broad U.S. Equity ETFs

Commodities

Tech Rebounds After Black Monday, Nvidia Rallies 6%, GM Plummets: What's Driving Markets Tuesday?

Semiconductor company NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) suffered the biggest single day value wipeout for a U.S. company Monday. The company dropped<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43254923/7-ai-infrastructure-stocks-plunge-over-20-outpace-semiconductor-rout-as-deepseek-upends-investment-landscape"> around $600 billion.</a>



Here's a look at how the stock's move impacted CEO Jensen Huang's wealth.



What Happened: Nvidia CEO Jensen Huang revealed in October that he <a href="https://www.benzinga.com/news/management/24/10/41294313/does-jensen-huang-check-nvidia-stock-price-daily">doesn't check the stock price </a>of the company he founded every day. That may have been a good thing on Monday.



Nvidia shares fell 17% to $118.42 on Monday on concerns that the Chinese AI DeepSeek could disrupt the sector. DeepSeek is said to be cheaper and not use the same expensive items that other American-based AI companies use, which could be bad news for companies like Nvidia.



With the stock price dive, Nvidia dropped from first to third place on the world's most valuable companies list with a market capitalization of $2.900 trillion. The company trails Apple ($3.456 trillion) and Microsoft ($3.230 trillion) as of Monday.



Huang lost $20.1 billion in wealth Monday with his new total hitting $101 billion, as reported by <a href="https://www.bloomberg.com/news/articles/2025-01-27/world-s-richest-people-lose-108-billion-after-deepseek-selloff">Bloomberg</a>. Huang now ranks 15th among the richest people in the world on the Bloomberg Billionaires <a href="https://www.bloomberg.com/billionaires/?sref=TBDibEcD">Index </a>and has lost $13.1 billion year-to-date.



The billionaire lost around 20% of his wealth, which is among the largest one-day percentage drops for the richest people in the world.



Other billionaires who have companies and wealth tied to the American AI sector also suffered big drops. Oracle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) co-founder Larry Ellison lost $22.6 billion. While this was a bigger dollar value drop, it represented around 12% of Ellison's wealth. Ellison ranks fifth on the billionaires list with a wealth of $186 billion.



Dell Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) CEO Michael Dell lost $13 billion and now ranks 14th at $114 billion.



Huang now has a larger gap between himself and making the top ten richest people in the world list. Warren Buffett currently ranks 105th at $149 billion. Huang ended 2024 <a href="https://www.benzinga.com/news/management/25/01/42771258/worlds-top-10-richest-people-gained-more-wealth-in-2024-than-costco-and-nikes-combined-valuation-how-elon-musk-warren-buffett-and-others-fared">worth $114 billion</a> ranking 12th on the list with a $70.3 billion gain in 2024. At that time, Huang was only $28 billion away from 10th place.



Are you buying when the CEOs of the Magnificent 7 are selling?



<ul>
<li>Stay in the know with our Insider Trades page — <a href="https://www.benzinga.com/sec/insider-trades/">see when leaders like Mark Zuckerberg, Elon Musk, and Jensen Huang are offloading their own shares.</a></li>
</ul>



Why It's Important: Nvidia stock remains up over 80% in the last year and was one of the top performing S&amp;P 500 stocks in 2024. Monday's drop could be short-lived and a minor setback or could signal more pressure on the valuation of companies in the artificial intelligence sector.



Fundstrat Global Advisors' head of research Tom Lee saw Monday's selloff of companies like Nvidia as<a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction"> a buying opportunity.</a>



"To me, it's an overreaction," Lee said on CNBC's "Opening Bell."



Lee compared Monday's drop to a March 2020 Nvidia stock decline that ended up being a good entry point for investors.



"I'd be looking at this as an opportunity."



Nvidia <a href="https://www.benzinga.com/markets/equities/25/01/43256425/nvidia-says-deepseek-an-illustration-of-how-new-ai-models-can-be-created-while-being-export-control-compliant-amid-600-billion-market-value-plunge">shared some comments</a> Monday on DeepSeek and its open-source AI model.



"DeepSeek's work illustrates how new models can be created using test time scaling, leveraging widely-available models and compute that is fully export control compliant," an Nvidia spokesperson told CNBC.



Nvidia said DeepSeek used GPU versions that are approved for China, shutting down rumors that GPUs from companies like Nvidia that are not allowed to be exported to the country were used. &nbsp;



NVDA Price Action: Nvidia stock is up 1.4% to $120.11 on Tuesday versus a 52-week trading range of $60.70 to $153.13.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/24/11/41888032/nvidia-ceo-jensen-huang-said-nvidia-has-no-long-term-strategy-how-this-philosophy-is-similar-to-his-reason-to-not-wear-a-watch">Nvidia CEO Jensen Huang Doesn&#8217;t Wear A Watch After A Gardner Taught Him The Secret Of Time</a></li>
</ul>



Photo: Shutterstock

Management

DELL

ORCL

Jensen Huang Loses $20B In Wealth: How DeepSeek Hit Nvidia Stock And World's Richest People

ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) is set to report its fourth-quarter financial results on Wednesday before the opening bell. Investors will be interested in its EUV machine bookings, commentary on the recent DeepSeek developments <a href="https://www.benzinga.com/25/01/43053982/taiwan-semiconductor-chief-calls-us-semiconductor-sanctions-manageable-to-skip-trump-inauguration">and export controls. </a>



DeepSeek: The surprise release of DeepSeek by a Chinese AI start-up over the weekend <a href="https://www.benzinga.com/news/management/25/01/43274796/jensen-huang-loses-20b-in-wealth-how-deepseek-hit-nvidia-stock-and-worlds-richest-people">rattled </a>the artificial intelligence and semiconductor markets. Investors will be interested in hearing any commentary from ASML management regarding DeepSeek and other potential cost-effective AI models that may <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43267966/deepseeks-low-cost-model-reshapes-ai-landscape-experts-predict-shift-to-application-layer">affect demand</a> for high-performance chips and ASML&#8217;s equipment. 



Read Next:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43254018/sofi-stock-falls-on-soft-guidance-despite-strong-quarter-with-record-member-growth-loan-originations-analyst"> SoFi Stock Falls On Soft Guidance Despite &#8216;Strong Quarter&#8217; With Record Member Growth, Loan Originations: Analyst&nbsp;</a>



Last Friday, Texas Instruments, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>) issued soft<a href="https://www.benzinga.com/trading-ideas/movers/25/01/43198648/whats-going-on-with-nvidia-stock-friday-6"> first-quarter </a>revenue guidance and ASML will be looking for reassurance about the long-term adoption rates of ASML&#8217;s EUV lithography systems in the form of EUV bookings figures and commentary from executives. 



Export Controls: Last week, Dutch Prime Minister Dick Schoof said <a href="https://www.benzinga.com/news/global/25/01/43144880/whats-going-on-with-asml-shares-wednesday">he anticipates</a> President Donald Trump will continue urging the Netherlands to restrict exports of chip-making machines from Netherlands-based <a href="https://www.benzinga.com/content/43123550/tech-titans-in-chips-3-semiconductor-stocks-worth-buying-now">ASML to China</a>. Investors will be looking for any further commentary from ASML regarding the effect of export controls on its business.&nbsp;



Expert Ideas: Heading into the fourth quarter print, Wells Fargo analyst Joseph Quatrochi maintained an Overweight rating on ASML stock and raised the price target from $790 to $860.



The three most recent <a href="https://www.benzinga.com/quote/ASML/analyst-ratings">analyst ratings</a> have an average price target of $814 with an implied 20.58% upside for ASML shares.



According to estimates from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, analysts expect ASML to report quarterly earnings of $6.71 per share on revenue of $9.02 billion. The company has beat analysts' expectations on the top and bottom lines for the past two consecutive quarters.&nbsp;



ASML Price Action: According to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, ASML shares are down 1.16% at $682.96 at the time of publication Tuesday. 



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/news/large-cap/25/01/43106379/trump-reverses-bidens-ai-policies-on-day-1-what-it-means-for-tech-giants-nvidia-amd-alphabet">Trump Reverses Biden&#8217;s AI Policies On Day 1: What It Means For Tech Giants Nvidia, AMD, Alphabet&nbsp;</a></li>
</ul>



Photo: Shutterstock

ASML

ASML Q4 Earnings Preview: DeepSeek, Export Controls, EUV Bookings In The Spotlight

Rivian Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) CEO RJ Scaringe is brushing off concerns that Donald Trump&#8217;s proposed elimination of the $7,500 EV federal tax credit could mark the end <a href="https://www.benzinga.com/electric-vehicles">of electric vehicles.</a>



While Scaringe believes his company is positioned well for the future of EV growth, he warns that the end of the credits could be bad for legacy automakers.



What Happened: Scaringe said policy changes to items like <a href="https://www.benzinga.com/trading-ideas/25/01/43116755/trumps-plan-to-end-7500-ev-tax-credits-could-be-devastating-for-telsa-rivals-poll-says-could-be-bullish-for-elon-musks-company">the federal tax credit</a> could be "small speed bumps" for Rivian and the entire electric vehicle sector during the opening of a new showroom in San Francisco recently.



"I started the company with the view of making highly compelling products, and none of my decision to start Rivian had anything to do with what the policy was going to look like," Scaring said at the event, as reported by <a href="https://electrek.co/2025/01/27/rivian-rivn-unfazed-trump-ev-changes-but-warns-rivals/">Electrek</a>.



Scaringe said that the potential elimination of the $7,500 tax credit would be "equally applied to all," which could mean a level playing field for all companies in the electric vehicle sector.



"The future of transportation will be electric."



Scaringe said policy revisions like this can't slow down the long-term trend of electric vehicle growth and the necessity of having more electric vehicles on the road.



"This is not a political thing. It's not like the left wants to move to electrification. It's that the future of transportation will be electric."



The Rivian CEO said the ending of the federal tax credit could see some legacy automakers invest less in their EV business segments, which could benefit his company.



"The challenge with some of these short-term changes, for the world and for the U.S. leadership in technology, is that it will cause some manufacturers to invest less in electrification."



Scaringe tempered his optimism, noting that while the change might benefit Rivian, it's ultimately "bad for the world."



Read Also: <a href="https://www.benzinga.com/news/earnings/24/11/41825787/rivian-q3-earnings-highlights-revenue-eps-miss-ceo-confident-in-q4-gross-profit-r2-being-fundamenta">Rivian Q3 Earnings Highlights: Revenue, EPS Miss, CEO Confident In Q4 Gross Profit, R2 Being &#8216;Fundamental Driver&#8217; Of Growth</a>



What's Next: Scaringe shared that the Volkswagen joint venture could lead to more partnerships with legacy automakers saying, "OEMs are knocking on our door."



The comments from Scaringe come after Rivian recently closed its loan agreement with the Department of Energy which will help finance its new EV manufacturing plant in Georgia.



The new plant will be home to the production for the upcoming R2 SUV and R3 crossover, which will come with lower starting price points than the R1S and R1T and are expected to usher in the next era of growth for Rivian.



The R2 is expected to begin production in early 2026 at Rivian&#8217;s Illinois factory, with plans to transition production to the Georgia factory, which is set to begin construction in 2026, by 2028. Once operational, the Georgia facility is projected to produce up to 400,000 vehicles annually.



Rivian aims to have annual vehicle production capabilities of 615,000 units between the two facilities in the future.



Rivian produced 49,476 vehicles and delivered 51,500 vehicles in 2024.



RIVN Price Action: Rivian stock is down 1.7% to $12.62 on Tuesday versus a 52-week trading range of $8.26 to $18.86. Rivian stock is down 22% over the last year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/trading-ideas/24/11/42217317/tesla-has-best-ev-under-50k-rivian-ceo-says-in-praise-of-rival-its-a-great-brand">Tesla Has Best EV Under $50K, Rivian CEO Says In Praise Of Rival: &#8216;It&#8217;s A Great Brand&#8217;</a></li>
</ul>



Photo: Shutterstock

RIVN

Rivian CEO Downplays $7,500 EV Tax Credit Concerns: 'Not A Political Thing'

Leading experts are now asserting that the creation of a U.S. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) reserve is increasingly likely, viewing President Donald Trump&#8216;s recent executive order as a significant signal of a <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43177482/trump-signs-executive-order-on-crypto-bitcoin-reserve-to-be-evaluated">major shift in U.S. crypto policy</a>.



What Happened: The order, signed last week, directs the evaluation of a "strategic national digital assets stockpile" has sparked intense discussion <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43096311/exclusive-trump-does-not-establish-bitcoin-reserve-crypto-friendly-policies-on-day-1-and-now">among industry stakeholders. </a>



The move has also put a halt on central bank digital currencies (CBDCs), marking a decisive turn from previous policies.



Speaking with Benzinga, Sveinn Valfells, co-founder and chair of Monerium, strongly advocates for the incorporation of Bitcoin into U.S. reserves, highlighting the asset&#8217;s growing market significance and liquidity. 



&#8220;The prospect of the U.S. Treasury incorporating Bitcoin into its reserves warrants serious consideration, particularly as digital assets gain mainstream acceptance,&#8221;&nbsp;he said, noting Bitcoin&#8217;s market capitalization of $2 trillion, which is approximately 15% of global gold reserves. 



He also pointed out that the asset&#8217;s growing liquidity, with daily exchange volumes in the tens of billions, further strengthens its case as a reserve asset.&nbsp;



He suggested that a prudent approach would involve&nbsp;&#8220;Bitcoin holdings in the tens of billions&#8221;&nbsp;and emphasized the importance of secure custody solutions, such as hardware wallets or regulated custodians. 



Valfells also addressed the need for adequate mining decentralization to prevent transaction censorship, and safeguards against market manipulation and insider trading, stating, &#8220;While these challenges are substantial, they&#8217;re not insurmountable within the framework of existing Treasury security protocols.&#8221;



What Experts Are Saying: Laura Wallendal, CEO and Founder of Acre, asserted that &#8220;For the United States, a Bitcoin reserve is inevitable,&#8221; while also mentioning that this is not an immediate prospect.



Wallendal explained that this move requires a comprehensive and calculated approach, emphasizing that &#8220;a Bitcoin reserve demands deliberate, long-term planning with significant economic and geopolitical considerations.&#8221; 



Wallendal further underscored Bitcoin&#8217;s inherent accessibility and the growing institutional and retail acceptance by calling it &#8220;freedom money,&#8221; stating that, &#8220;it's clear that Bitcoin's credibility is only growing.&#8221;



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43244653/bitcoin-ethereum-solana-crash-heres-why-chinas-low-cost-ai-model-deepseek-may-be-to-blame">Bitcoin, Ethereum, Solana Crash — Here&#8217;s Why China&#8217;s Low-Cost AI Model DeepSeek May Be To Blame</a>



Azeem Khan, co-founder of Morph, while expressing reservations about the principle of national governments owning Bitcoin, acknowledges the strategic benefits if the U.S. does proceed with it. 



&#8220;I'm not a fan of national governments owning Bitcoin—private money belongs in private hands,&#8221;&nbsp;he said, but added that a U.S. Bitcoin reserve could potentially&nbsp;&#8220;serve as a long-term hedge against inflation and strengthen the U.S. dollar.&#8221;&nbsp;



Khan views the initiative as a signal that the U.S. is starting to take digital assets seriously, further stating that while Bitcoin should absolutely be the foundation, the opportunity to expand this focus over time to other Web3 technologies, like Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) or Layer-1 protocols, could position the U.S. as a true leader in the digital economy.



He also cautioned against over-optimism, warning,&nbsp;&#8220;This is far from a guarantee,&#8221;&nbsp;and pointing out that much will depend on the recommendations of the Working Group and the willingness of policymakers to act decisively.



The executive order also sets a 60-day deadline for relevant agencies to review existing regulations and make recommendations on which need to be rescinded or modified. 



A significant departure from previous administrations, the order explicitly prohibits the establishment of CBDCs within the U.S., stating that no agency can take any action to &#8220;establish, issue, or promote CBDCs within the jurisdiction of the United States or abroad." It further mandates the immediate termination of all existing CBDC-related initiatives. 



The order explicitly aims to reverse policies that "suppressed innovation and undermined U.S. economic liberty and global <a href="https://www.benzinga.com/25/01/43086698/crypto-market-plunges-after-trumps-inaugural-speech-fails-to-mention-digital-assets">leadership in digital finance."</a>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/25/01/43231667/microstrategys-bitcoin-buying-spree-continues-accumulates-over-10000-btc">MicroStrategy&#8217;s Bitcoin Buying Spree Continues, Accumulates Over 10,000 BTC</a></li>
</ul>



Image created using artificial intelligence with Midjourney.

How Donald Trump Could Make The Strategic Bitcoin Reserve A Reality

The artificial intelligence boom that has powered tech stocks for over a year is facing fresh scrutiny after DeepSeek, a Chinese AI firm, unveiled a model that could challenge the capital-intensive spending narrative driving <a href="https://www.benzinga.com/markets/equities/25/01/43261206/nvidia-broadcom-gain-over-5-as-tech-giants-rebound-after-monday-sell-off-whats-going-on">the U.S. AI industry.</a> 



Investors are questioning whether the staggering sums poured into AI infrastructure, exceeding $500 billion in recent announcements from major U.S. tech firms, will effectively generate the anticipated returns.



According to a note from Goldman Sachs shared Tuesday, analyst Eric Sheridan said DeepSeek's R1 model has triggered market concerns over "levels of spend, returns on spend, and the sustainability of current trend lines" in AI investment.



<h3 class="wp-block-heading">AI Stocks Face Pressure</h3>



Investors are now grappling with a critical question: If effective AI models can be built at significantly lower costs, does this diminish the competitive edge of firms investing heavily in GPUs, networking equipment, and data centers? 



The uncertainty has weighed on semiconductor stocks, which saw a knee-jerk selloff on Monday following the news.



DeepSeek's R1 model, which builds on open-source architectures like Meta Platforms Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Llama and Alibaba Group Holding Ltd.'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) Qwen, has demonstrated strong reasoning capabilities while reportedly costing just $5.6 million to train.



By contrast, some of the most advanced AI models from U.S. companies require billions in computing power and proprietary datasets to develop.



Sheridan said, "DeepSeek's reported training cost likely does not represent the fully loaded expense of developing its models," as the firm appears to have leveraged existing open-source frameworks built on significantly higher infrastructure spending. 



He added that the lack of transparency around DeepSeek's hardware and data sources adds another layer of complexity for investors.



Nonetheless, the emergence of a competitive model at lower cost has raised the question of whether companies like Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) can sustain their current AI-driven valuation multiples. 



"The market reaction is currently being driven by questions around the collective capital expenditures needed for the AI theme to scale," Sheridan said.



<h3 class="wp-block-heading">A Shift From Infrastructure To Applications</h3>



Goldman Sachs' analysis suggests that AI investments may soon shift from the infrastructure layer—dominated by semiconductor and cloud providers—to the &#8220;application layer,&#8221; where consumer and enterprise AI adoption could accelerate. 



Companies developing AI-powered assistants, automation tools, and enterprise solutions may see a greater share of AI-related revenues in the future.



"The next level of evolution in the AI theme is likely to shift from infrastructure to applications, as AI agents, enterprise use cases, and rising consumer utility take center stage,&#8221; Sheridan said. 



The note also highlights that AI assistants, such as Alphabet Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Gemini and OpenAI&#8217;s ChatGPT, are likely to play a central role in consumer interactions with AI over the next 12 to 18 months. 



The rising capabilities of these tools—such as booking reservations and browsing the web—are expected to shape how users engage with AI-powered services.



"DeepSeek's innovations reinforce our thesis that the application and platform layers will benefit as revenue moves away from the infrastructure layer,&#8221; Sheridan added.



<h3 class="wp-block-heading">What's Next for AI Investors?</h3>



The debate over AI spending efficiency is far from over, and the next major catalyst will likely come during fourth-quarter earnings season. Investors will be looking for tech executives to address whether AI investments are generating meaningful returns and how competition from lower-cost AI models may influence future spending.



Sheridan cautioned that the uncertainty surrounding DeepSeek's cost advantages may weigh on valuations for AI-related stocks until greater clarity emerges.



For now, the sector remains at an inflection point with DeepSeek challenging the status quo. The next phase may be defined not just by who spends the most, but by who spends the smartest.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43254923/7-ai-infrastructure-stocks-plunge-over-20-outpace-semiconductor-rout-as-deepseek-upends-investment-landscape">7 AI Infrastructure Stocks Plunge Over 20%, Outpace Semiconductor Rout As DeepSeek Upends Investment Landscape</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

AVGO

BABA

DeepSeek's Low-Cost Model Reshapes AI Landscape: Experts Predict Shift To 'Application Layer'

After Monday's dramatic crash, tech stocks made a solid recovery in Tuesday&#8217;s premarket. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) led the way, climbing 5.29% to $124.91, with Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) not far behind, gaining 4.82% to $211.87. Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) and Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) also posted modest gains of 1.90% and 1.87%, respectively, as the sector began to stabilize.



What Happened: The sell-off on Monday was triggered by news from Chinese AI startup DeepSeek, which unveiled a cost-efficient AI model that outperformed competitors like OpenAI and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) at a fraction of the cost.



This announcement rattled investors, sending Nvidia's stock into a historic plunge that wiped out nearly $600 billion in market value.



See Also:&nbsp;<a href="https://www.benzinga.com/25/01/43256073/jensen-huangs-biggest-fear-isnt-ai-competitionits-the-stage-why-public-speaking-terrifies-silicon-valleys-coolest-leaders-including-musk-zuckerberg-and-buffett" target="_blank" rel="noreferrer noopener">Jensen Huang's Biggest Fear Isn't AI Competition—It's Pre-Show Butterflies: How Silicon Valley's Coolest Leaders Like Mark Zuckerberg And Elon Musk Are Gripped With Stage Fright</a>



The tech recovery came after analysts were quick to call the <a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">market's reaction an overreach</a>. Analysts believe advancements like these could drive even more investment in AI infrastructure, pushing the industry closer to major milestones like artificial general intelligence.



Gene Munster of Deepwater Asset Management argued that the demand for AI infrastructure would only keep growing. Fundstrat's Tom Lee also sees the sell-off as&nbsp;<a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">an opportunity for investors</a>, comparing it to Nvidia&#8217;s March 2020 decline, which proved to be a significant entry point for investors.



Meanwhile,&nbsp;OpenAI&nbsp;CEO&nbsp;Sam Altman&nbsp;has&nbsp;<a href="https://www.benzinga.com/25/01/43259545/deepseeks-r1-is-impressive-but-openai-ceo-sam-altman-says-they-will-crush-it-with-much-better-models-looking-forward-to-bringing-you-all-agi-and-beyond">acknowledged the impressive performance</a>&nbsp;of DeepSeek&#8217;s R1 model, expressing enthusiasm about the competition and speaking about OpenAI&#8217;s plans to introduce even more advanced models in the future.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/43153571/openais-sam-altman-flip-flops-on-trump-as-500-billion-stargate-ai-project-is-announced-years-after-praising-reid-hoffman-for-stopping-his-re-election" target="_blank" rel="noreferrer noopener">OpenAI&#8217;s Sam Altman Flip Flops On Trump After $500 Billion Stargate AI Project, Says ‘I Wish I Had Done More Of My Own Thinking&#8217;</a></li>
</ul>



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image Via Shutterstock

INTC

Nvidia, Broadcom Gain Over 5% As Tech Giants Rebound After Monday Sell-Off: What's Going On?

On Tuesday, JetBlue Airways Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBLU#NASDAQ">JBLU</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b43261642/jetblue-announces-fourth-quarter-2024-results" rel="noreferrer noopener">reported an</a> adjusted loss per share of 21 cents, beating the consensus loss of 31 cents, compared to a 19-cent loss <a target="_blank" href="https://www.benzinga.com/quote/JBLU" rel="noreferrer noopener">reported a year ago</a>.



The air carrier reported operating revenue of $2.28 billion, down 2.1% year over year and beating the consensus of $2.25 billion. In the fourth quarter of 2024, capacity decreased by <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">5.1% year-over-year</a>.



Also Read: <a target="_blank" href="https://www.benzinga.com/general/travel/25/01/42791291/jetblue-fined-2-million-for-chronic-flight-delays-delta-united-rank-among-most-on-time-airlines" rel="noreferrer noopener">JetBlue Fined $2 Million For ‘Chronic Flight Delays': Delta, United Rank Among Most On-Time Airlines</a>



Fourth quarter year-over-year operating revenue per ASM increased by 3.2%, driven mainly by strong close-in demand during the November and December holiday peaks.



"2024 was a year of rapid change for JetBlue as we introduced our refocused strategy, JetForward, setting us on a path to get back to profitability," said Joanna Geraghty, JetBlue's CEO.



"We finished the year strong, exceeding both revenue and cost expectations with operational reliability delivering for our customers throughout the holiday season.



"With a healthy revenue backdrop, continued cost control and incremental earnings from JetForward, we believe we are well-positioned to deliver on our goal of achieving a positive operating margin for the full year," Geraghty added.



Revenue initiatives in 2024 achieved a top-line benefit of $395 million, exceeding the $300 million target. This contributed $90 million of EBIT&nbsp;to the JetForward program in 2024, originally forecasted to be <a target="_blank" href="https://www.benzinga.com/general/travel/25/01/43251546/jetblue-earnings-on-the-horizon-analyst-downgrades-stock-as-carrier-faces-cost-cuts" rel="noreferrer noopener">realized in 2025</a>.



Operating expense per available seat mile (CASM) for the fourth quarter of 2024 decreased 0.4% year-over-year. Operating expenses per available seat mile, excluding fuel, other non-airline operating expenses, and special items (CASM ex-Fuel) increased 11.0% year-over-year.



The average fuel price in the fourth quarter of 2024 was $2.47 per gallon, including hedges. The operating margin for the quarter improved to 0.7% and adjusted operating margin&nbsp;by 2.4 points year-over-year to 0.8%.



JetBlue ended the fourth quarter with $3.9 billion in unrestricted cash, and equivalents.



Guidance: JetBlue anticipates that in the first quarter of 2025, available seat miles (ASM) will decline (5.0%) &#8211; (2.0%) year over year, with approximately being flat in 2025.



RASM growth is anticipated to be (0.5%)-3.5% for the first quarter of 2025 and 3.0%-6.0% for 2025.



JetBlue anticipates a Capex of $270 million in the first quarter and roughly $1.40 billion in 2025



"We expect to reach positive operating margin in 2025 by building on the progress we made in 2024, delivering on our revenue and reliability initiatives as part of JetForward, and continuing our cost control efforts," said Ursula Hurley, JetBlue's CFO.



Price Action: At last check on Tuesday, JBLU stock was down 8.78% to $7.38 during the premarket session.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/01/43260751/alibaba-unveils-advanced-ai-model-amid-us-tech-sell-off-triggered-by-deepseeks-performance">Not Just DeepSeek &#8211; Alibaba Unveils AI Model To Rival OpenAI&#8217;s Operator</a></li>
</ul>



Photo via Shutterstock

Guidance

JBLU

JetBlue Airways Q4 Earnings: Smaller Than Expected Loss, Sees Q1 Capacity Decline, Positive Operating Margin In 2025

U.S. stock futures rebounded on Tuesday, recovering from significant technology sector losses on Monday. All major market indices showed gains, except the small-cap index gauge Russell 2000.



Investors are closely watching the Federal Reserve&#8217;s interest rate decision this week, which coincides with the earnings reports of five out of the seven &#8220;Magnificent 7&#8221; tech giants.



The 10-year Treasury yield stood at 4.57%, while the two-year yield was at 4.22%. According <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">to</a> the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>, there is a 99.5% chance that the Federal Reserve will keep interest rates unchanged on Wednesday.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.68%</td></tr><tr><td>S&amp;P 500</td><td>0.38%</td></tr><tr><td>Dow Jones</td><td>0.042%</td></tr><tr><td>Russell 2000</td><td>-0.05%</td></tr></tbody></table></figure>



Both the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) were trading higher in premarket on Tuesday. SPY was up by 0.40% to $601.76, while QQQ gained 0.70% to $517.80, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From The Last Session



U.S. stocks closed <a href="https://www.benzinga.com/news/earnings/25/01/43258615/nasdaq-dips-3-as-nvidia-other-chip-stocks-tumble-investor-sentiment-declines-greed-index-moves-to-fear-zone">mixed</a> Monday, with Nasdaq tumbling 3%. Tech stocks plunged after China&#8217;s DeepSeek unveiled an open-source AI model surpassing ChatGPT at lower costs. 



AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) beat Q4 earnings and revenue estimates for the fourth quarter. Economic data showed improvement in December, with the Chicago Fed National Activity Index reaching a seven-month high of 0.15 and U.S. building permits increasing 0.7%.



Healthcare, financials, and consumer staples sectors gained, while tech and utilities lagged.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-3.07%</td><td>19,341.83</td></tr><tr><td>S&amp;P 500</td><td>-1.46%</td><td>6,012.28</td></tr><tr><td>Dow Jones</td><td>0.65%</td><td>44,713.58</td></tr><tr><td>Russell 2000</td><td>-1.03%</td><td>2,284.02</td></tr></tbody></table></figure>



Insights From Analysts



Talking about DeepSeek's impact on markets Jeremy Siegel, senior economist at WisdomTree and former Professor at the University of Pennsylvania said that such events could derail the ‘Magnificent 7' and the tech narrative.



"This could finally signal the shift from growth to value stocks," he added.



On the upcoming FOMC decision on interest rates, he added, "The Fed's cautious stance reinforces stability, while Trump's policies, though unconventional, appear growth-focused in key areas like AI and investment into the U.S."



However, Trump's cryptocurrency policy remains ambiguous, particularly regarding a potential Bitcoin strategic reserve, he said. "Markets are awaiting clarity as this will have significant implications for the crypto space."



Carson Research's Ryan Detrick pointed out in an X post that over the last two weeks, an average of 334.6 stocks a day have advanced. When such average returns were observed during March 2023, the index gained 27% over the next 12 months.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The past 10 days a total of 3,346 stocks in the S&amp;P 500 have advanced, or 334.6 avg a day over a two week span. That is the best 10 day number since 3/31/2023. The S&amp;P 500 went up four straight months after that and gained 27% the next 12 months.&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1884082571673493968?ref_src=twsrc%5Etfw">January 28, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Tuesday:



<ul>
<li>Durable goods orders data for December will be out by 8:30 a.m., ET.</li>
</ul>



<ul>
<li>November's S&amp;P Case-Shiller home price index for 20 cities will be released at 9:00 a.m., ET.</li>
</ul>



<ul>
<li>Consumer confidence data for January will be announced at 10:00 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) was up 0.98% in premarket on Tuesday ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of $1.86 per share on revenue of $43.61 billion.</li>
</ul>



<ul>
<li>Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) was up 0.99% despite Wall Street expecting it to report a quarterly loss of $2.44 per share on revenue of $16.17 billion, before the opening bell.</li>
</ul>



<ul>
<li>Starbucks Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) was down 0.6% ahead of its earnings before the opening bell. Analysts expect it to report quarterly earnings of 67 cents per share on revenue of $9.32 billion.</li>
</ul>



<ul>
<li>Brown &amp; Brown Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRO#NYSE">BRO</a>) was up 2.93% after it posted better-than-expected results for its fourth quarter on Monday.</li>
</ul>



<ul>
<li>Nucor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NUE#NYSE">NUE</a>) was up 0.22% as it reported upbeat fourth-quarter financial results after the market closed on Monday.</li>
</ul>



<ul>
<li>IMAC Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BACK#NASDAQ">BACK</a>) was up 117.13% after it launched Ignite Proteomics, a subsidiary focused on protein-based cancer treatment selection.</li>
</ul>



<ul>
<li>ZK International Group Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZKIN#NASDAQ">ZKIN</a>) was up 52.05% after it reported a year-over-year increase in FY24 EPS result.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 0.33% to hover around $73.41 per barrel.



The gold spot index was up by 0.13% to $2,744.16 per ounce. The Dollar Index was up 0.51% at 107.892 level.



Asian markets closed mixed on Monday as China's CSI 300, Australia's ASX 200, and Japan's Nikkei 225 index fell. Whereas, South Korea's Kospi, Hong Kong's Hang Seng, and India's S&amp;P BSE Sensex rose. European markets were higher in trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/43258090/gamestop-short-seller-wants-freedom-of-speech-for-millions-having-stock-market-conversations-questioning-sec-on-what-protects-honest-opinions">Gamestop Short Seller Wants Freedom Of Speech For &#8216;Millions&#8217; Having Stock Market Conversations, Questioning SEC On &#8216;What Protects Honest Opinions?&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Futures

Pre-Market Outlook

BACK

ZKIN

US Stocks Futures Trade Higher A Day After A Rout In Nvidia And Other Tech Stocks: Investors Brace For Fed Decision, Big Tech Earnings

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