US stocks steadied Tuesday after the previous session's tech-driven rout sparked by the popularity of Chinese AI startup DeepSeek, a attention turn to the latest Federal Reserve policy-setting meeting.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average Futures}} gained 32 points, or 0.1%, while the S&P 500 index dropped 4 points, or 0.1%, and the NASDAQ Composite slipped 15 points, or 0.1%.
The tech-influenced Wall Street indices closed sharply lower on Monday, after DeepSeek unveiled advancements in AI technology that could disrupt the market, prompted fears of heightened competition and potential market share erosion to the US-based chipmakers.
AI-linked stocks rebound
The tech sector has rebounded Tuesday, with AI chip leader Nvidia (NASDAQ:NVDA) edging higher, a day after $593 billion was wiped off its market value in the biggest single-session loss for any company.
Aside from the tech sector, company earnings have taken center stage, with more to come as the week progresses.
General Motors (NYSE:GM) stock fell 8% after the auto giant swung to a loss in the fourth quarter on huge charges related to China.
Royal Caribbean (NYSE:RCL) stock rose 6% after the cruise operator reported better-than-expected fourth quarter earnings and provided a robust outlook for 2025.
Boeing (NYSE:BA) stock rose 4% after Chief Executive Officer Kelly Ortberg detailed plans for a turnaround following the aircraft manufacturer posting its sixth consecutive annual loss, its biggest annual loss since 2020, as it grappled with the fallout from a prolonged machinists strike, charges from U.S. government projects and expenses linked to a slew of job cuts.
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JetBlue Airways (NASDAQ:JBLU) stock slumped 17% after the carrier reported a hefty loss for the fourth quarter of 2024, with unit revenue guidance weaker than expected.
"Magnificent 7" members Microsoft (NASDAQ:MSFT), Facebook-parent Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) are due later this week.
Investors await Fed meeting
Focus this week was squarely on the Federal Reserve's upcoming two-day policy meeting, due to start later in the session.
The Fed is widely expected to keep borrowing costs unchanged at the end of its meeting on Wednesday, following a string of reductions late last year that left the all-important benchmark rate at a range of 4.25% to 4.50%.
Fed’s preferred gauge of inflation - PCE price index data, and advance GDP estimates for the fourth quarter are also due this week.
Data released earlier Tuesday indicated that single-family house prices increased moderately in November as higher mortgage rates curbed demand.
House prices rose 0.3% on a month-on-month basis after an upwardly revised 0.5% increase in October, advancing 4.2% in the 12 months through November, following an unrevised 4.5% gain in October.
Crude edges higher
Oil prices edged higher Tuesday, but remained close to two-week lows on the back of concerns over increased supplies under President Donald Trump, as well as doubts over long-term demand, particularly from China.
By 09:35 ET, the US crude futures (WTI) climbed 0.6% to $73.62 a barrel, while the Brent contract rose 0.5% to $76.59 a barrel.
Oil prices have slumped some 5% in the past week, weighed by Trump declaring a national energy emergency in order to ramp up US production, while calling on the Organization of Petroleum Exporting Countries to increase production.
Markets were also on edge over the president’s plans to impose trade tariffs on major economies, especially China.
China, the world's largest importer of crude oil, reported on Monday an unexpected contraction in manufacturing activity in January, adding to concerns over global crude demand growth.
