As of the close, the Dow Jones increased by 136.77 points, up 0.31%, to 44,850.35 points; the Nasdaq rose by 391.75 points, up 2.03%, to 19,733.59 points; the S&P 500 Index gained 55.42 points, up 0.92%, to 6,067.70 points.
According to Zhitong Finance, U.S. stocks closed higher on Tuesday, led by Technology stocks, with the Nasdaq and S&P indexes partially recovering the massive decline from Monday. The market continues to assess the potential impact of Chinese startup DeepSeek and its AI model on the U.S. AI trading. Investors are also focusing on the earnings reports from tech stocks like Microsoft and Apple, the Federal Reserve's monetary policy meeting, and the latest tariff threats issued by Trump.
[U.S. Stocks] At the close, the Dow rose 136.77 points, an increase of 0.31%, closing at 44,850.35 points; the Nasdaq rose 391.75 points, an increase of 2.03%, closing at 19,733.59 points; the S&P 500 Index rose 55.42 points, an increase of 0.92%, closing at 6,067.70 points. NVIDIA (NVDA.US) rose more than 8.9%. The company plunged nearly 17% on Monday, losing nearly 600 billion USD in market cap, marking the largest single-day decline in history for a U.S. listed company. Broadcom (AVGO.US) and Oracle (ORCL.US) rose 2.6% and 3.6%, respectively, after plunging 17.4% and 13.8% on Monday. Apple (AAPL.US) rose nearly 4% to remain the largest by global market cap, while Microsoft (MSFT.US) rose nearly 3%.
[European Stocks] The German DAX30 Index rose 0.70%; the UK FTSE100 Index rose 0.35%; the France CAC40 Index fell 0.12%; the Euro STOXX 50 Index rose 0.14%; the Spain IBEX35 Index rose 1.31%; the Italy FTSE MIB Index fell 0.12%.
[Asia Pacific Stock Market] Most of the Asian markets closed due to the Spring Festival holiday, with the Nikkei 225 Index falling 1.39%.
[Cryptos] Bitcoin briefly followed risk assets and rebounded above 0.103 million USD but turned to decline at the end: as of press time, down 0.99%, quoted at 101,085.9 USD.
[Gold] COMEX Gold Futures rose 1.21%, quoted at 2,771.40 USD/ounce. Spot Gold rose 0.83%, quoted at 2,763.47 USD/ounce, reaching a daily high of 2,765.05 USD near the close of U.S. stocks.
[Crude Oil Product] Brent March Crude Oil Futures closed up $0.41, rising 0.53%, at $77.49 per barrel; WTI March Crude Oil Futures closed up $0.60, rising 0.82%, at $73.77 per barrel.
[Macroeconomic News]
In December, USA's durable goods orders unexpectedly fell by 2.2% month-on-month, with a significant reduction in aircraft orders. The data released by the Department of Commerce on Tuesday showed that core durable goods orders in the USA grew more than expected, but overall durable goods orders unexpectedly declined due to a sharp drop in aircraft orders. Core capital goods shipments in December increased by 0.6%, the highest growth rate in nearly a year, which will help economists adjust their estimates for business equipment spending in fourth-quarter USA GDP.
The "New Federal Reserve News Agency" hints that tariffs are a key uncertainty for future Federal Reserve actions. Timiraos stated that it is widely expected that the Federal Reserve will pause interest rate cuts in this week's meeting, and when or whether the Federal Reserve will resume rate cuts largely depends on the inflation outlook, which may be affected by tariffs. The Federal Reserve's response to tariffs this time may differ from that during Trump's first term. The USA has just experienced high inflation, and businesses and consumers are more sensitive to price pressures; once inflation expectations rise, prices may continue to grow at a higher rate.
Affected by the job market, the USA Consumer Confidence Index fell to a four-month low. Due to weakened optimism about the labor market and overall economic prospects, the Consumer Confidence Index in January unexpectedly dropped to a four-month low. Data released on Tuesday indicated that the Conference Board Consumer Confidence Index fell by 5.4 to 104.1 in January. The median forecast by economists surveyed by Bloomberg was 105.7. The present situation index decreased by nearly 10 points, while the expectations index measuring outlook for the next six months fell relatively less. Inflation is cooling slowly; although the labor market appears decent on the surface, job seekers report that finding a job is taking longer. As consumers evaluate how Trump's policies will impact the economy, the confidence index has been fluctuating.
USA housing prices accelerate upward, as buyers still plan to purchase homes despite high interest rates. In November, USA housing prices increased at a faster pace as buyers continued to seek home purchases amid rising borrowing costs. According to S&P CoreLogic Case-Shiller data, the national housing price index rose by 3.8% year-on-year, surpassing October's year-on-year increase of 3.6%. The increase in November pushed the index to record highs for the 18th consecutive month. In a survey of 20 cities, New York had the largest annual increase, followed by Chicago and Washington. Earlier this month, the average rate for a 30-year mortgage broke above 7%. The rising borrowing costs have put pressure on demand. According to Redfin Corp, as of January 19, contract signings fell by 10% over the last four weeks. Realtor.com senior economic research analyst Hannah Jones stated, "The recent rise in rates could once again suppress buyer demand, making the start of 2025 rocky."
[Individual Stock News]
Under the impact of delivery delays, aviation giant Boeing (BA.US) reported its largest annual loss since the pandemic. Boeing announced a nearly $4 billion loss for the fourth quarter of 2024, marking the company's largest annual loss since 2020. In the last three months of 2024, Boeing incurred a loss of $3.86 billion, with the commercial aircraft division and defense and aerospace business accounting for about $3 billion in costs. These costs involve multiple aircraft models, including the Boeing 767, KC-46 tanker, and long-delayed 747 planes — intended for the new ‘Air Force One’. Boeing's total annual loss reached an astonishing $11.83 billion, the largest loss since 2020.
The electric vehicle business has become a new engine, and General Motors (GM.US) exceeded market expectations in Q4. In the fourth quarter, General Motors' revenue and profits both surpassed Wall Street expectations, and it is expected to maintain strong performance growth in 2025. General Motors reported an adjusted EPS of $1.92, above Wall Street's expectation of $1.89; total revenue was approximately $47.7 billion, exceeding Wall Street's expectation of $43.93 billion. General Motors' 2025 financial guidance range includes: net income attributable to shareholders of $11.2 billion to $12.5 billion, or EPS of $11 to $12; adjusted EBIT of $13.7 billion to $15.7 billion, or adjusted EPS of $11 to $12; and adjusted free cash flow from the automotive business between $11 billion and $13 billion. General Motors' 2025 financial guidance aligns with basic forecasts from Wall Street analysts.
Starbucks (SBUX.US) experiences a slowdown in sales decline. In the fiscal quarter ending December 29, same-store sales fell 4%. This marks an improvement compared to a 7% decline in the previous quarter. Analysts surveyed by Bloomberg previously estimated a decline of 5.3%. The quarterly sales decline at Starbucks was less than expected, indicating that the concerning loss of customers for this coffee chain is beginning to ease. The performance shows that Starbucks is making progress, with revenue of $9.4 billion and EPS of $0.69, both slightly above average expectations, while the sales decline in its largest region, North America, met expectations.
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