Skip to main content
Tags: stocks | technology

Nasdaq Leads Wall St Higher as Tech Shares Recover

Nasdaq Leads Wall St Higher as Tech Shares Recover
A trader on the floor of the New York Stock Exchage, January 24, 2025 (Michael M. Santiago/Getty Images)

Tuesday, 28 January 2025 04:06 PM EST

U.S. stocks ended higher Tuesday, with Nvidia and other artificial intelligence-linked technology shares recovering from sharp losses the previous day as investors snapped up bargains.

The Nasdaq led gains and AI chip leader Nvidia gave the index its biggest boost, a day after Nvidia's 17% drop erased about $593 billion from its market value in the biggest single-session loss for any company.

The S&P 500 technology sector rose the most of any S&P 500 sector, while an index of semiconductor shares also gained.

Investors were eager to hear from Apple, Microsoft and other companies when they report quarterly results this week.

The tech sell-off followed Chinese startup DeepSeek's launch of AI models it said were on a par or better than industry-leading U.S. rivals at a fraction of the cost.

"We're getting the typical bounceback rally you'd expect when you have news that's not very specific and more of a potential for a future change," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

"Some of the tech market, particularly around AI, was ready for a bit of a sell-off, and this news provided the excuse for it. Today you're seeing the bargain hunters come back in and also those who are discounting the news about DeepSeek since we don't really know very much about it."

Nvidia's forward price-to-earnings ratio, a common valuation metric, earlier hit its cheapest level since December 2023.

According to preliminary data, the S&P 500 gained 54.68 points, or 0.91%, to end at 6,066.96 points, while the Nasdaq Composite gained 391.75 points, or 2.03%, to 19,733.59. The Dow Jones Industrial Average rose 134.17 points, or 0.30%, to 44,847.71.

Fourth-quarter 2024 U.S. earnings season is in full swing, with shares of Royal Caribbean rallying after the cruise operator forecast annual profit largely above expectations.

Boeing shares were volatile after the planemaker reported its biggest annual loss since 2020. General Motors shares fell following its results and outlook, with investors weighing the threat of tariffs that could hit the automaker's business.

U.S. President Donald Trump said late on Monday he plans to impose tariffs on imported computer chips, pharmaceuticals and steel.

On Wednesday, the Federal Reserve is widely expected to hold its lending rate steady in its first interest-rate decision of the year.

© 2025 Thomson/Reuters. All rights reserved.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.

StreetTalk
U.S. stocks ended higher Tuesday, with Nvidia and other artificial intelligence-linked technology shares recovering from sharp losses the previous day as investors snapped up bargains.
stocks, technology
382
2025-06-28
Tuesday, 28 January 2025 04:06 PM
Newsmax Media, Inc.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 

Interest-Based Advertising | Do not sell or share my personal information

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© 2025 Newsmax Media, Inc.
All Rights Reserved
Download the Newsmax App
NEWSMAX.COM
America's News Page
© 2025 Newsmax Media, Inc.
All Rights Reserved