| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 44713.52 | -136.83 | -0.31% |
| S&P 500 | 6039.31 | -28.39 | -0.47% |
| Nasdaq | 19632.32 | -101.26 | -0.51% |
| VIX | 15.56 | 0.15 | 0.91% |
| Gold | 2774.60 | 4.80 | 0.17% |
| Oil | 72.94 | 0.30 | 0.41% |
US MARKET
U.S. stocks struggled as weakness in tech shares weighed on major indexes, with Wall Street reassessing AI leadership following the emergence of China’s DeepSeek, a potential disruptor promising significant advancements at lower costs.
The S&P 500 and Nasdaq saw early losses extend after the Federal Reserve concluded its two-day policy meeting with a hawkish hold, signaling that interest rates may remain elevated for longer than markets anticipated. Treasury yields spiked following the decision, while the dollar held steady. Fed Chair Jerome Powell reiterated that it’s too soon to gauge the impact of President Donald Trump’s policies, emphasizing the central bank’s cautious approach in assessing potential shifts in fiscal and regulatory measures.
Earnings reports from three of the Magnificent 7 stocks offered little clarity after the bell. Microsoft shares initially dropped over 3% in extended trading, Tesla fluctuated before recovering, and Meta slipped 1.3%. Apple, set to report earnings Thursday after the close, saw its stock dip earlier in the session, while AI-chip leader Nvidia fell 4.5%, pressuring the broader market.
The S&P 500 closed down 0.46%, while the Nasdaq lost 0.51%. Microsoft finished 1% lower, Tesla dropped 2.25%, and Meta managed a slight 0.3% gain. Nvidia, which has been volatile all week, attempted to claw back losses after a steep selloff on Monday, spurred by DeepSeek’s claims of running AI models on less advanced chips compared to OpenAI’s.
Australian Markets Wrap
Australian shares opened higher as softer-than-expected inflation data continued to fuel hopes for an imminent interest rate cut, while strong earnings from U.S. tech giants boosted sentiment in the local technology sector. The S&P/ASX 200 edged up 0.1% to 8,455.7, with seven of eleven sectors advancing. The Australian dollar slipped to US62.35¢.
The Federal Reserve held interest rates steady, with Chair Jerome Powell maintaining a cautious stance, emphasizing the need for more progress on inflation before considering cuts. Despite this, optimism prevailed in Australia, as December’s inflation reading prompted Citi and Westpac to bring forward their rate cut expectations to February.
Paladin Energy led the index, gaining 3.9%, while Karoon Energy jumped the same amount after reporting a 53% surge in oil sales for the December quarter. Meanwhile, Mineral Resources tumbled 5.8% despite reaffirming its financial year 2025 guidance.
Elsewhere, Lovisa shares fell 1.8% after facing a class action over alleged staff underpayments, and IGO dropped 3.1% following a $79 million earnings loss in the December quarter due to weaker revenues from its Tianqi Lithium joint venture.