Here are five key things investors need to know to start the trading day:
1. AI bubble burst?
Stock futures were slightly higher Tuesday morning after a tech stock sell-off led the S&P 500Nasdaq Compositefall sharply on Monday. The drop in stocks tied to AI came after Chinese start-up DeepSeek sparked concern that artificial intelligence models could be built for far less than the billions tech giants have been investing. The S&P 500 fell about 1.5% in the sell-off, while the Nasdaq Composite slid more than 3%. The Dow Jones Industrial AverageFollow live market updates.
2. Deep trouble
Shares of NvidiaDeepSeek-fueled tech rout, making for the stock’s worst day since March 2020. The AI darling’s plunge resulted in a market cap loss of close to $600 billion — the biggest single-day drop ever in U.S. history. To put that in perspective, that’s more than the market value of both OracleNetflixCoca-ColaChevronBroadcom
3. Road to recovery
Boeingsixth consecutive annual loss Tuesday, losing nearly $4 billion in the fourth quarter as the plane-maker tries to stage a turnaround. “While it was a challenging year, we are seeing encouraging signs of progress as we work together to turn around our company,” CEO Kelly Ortberg said in a staff memo. The last time Boeing posted a profit was in 2018.
4. Full speed ahead
General Motorsexpectations for the fourth quarter on Tuesday, reporting adjusted earnings per share of $1.92 and revenue of $47.7 billion. CFO Paul Jacobson called the company’s 2024 performance “outstanding,” citing growth in both its EV and internal combustion engine businesses. The company is also forecasting another strong year ahead, despite slowing industry sales, restructuring in China and geopolitical uncertainty.
5. Tall order
Also on deck to report quarterly results today: StarbucksBrian Niccol now at the helm, the coffee chain is still in the early stages of a turnaround and waiting for larger changes to take hold, meaning its first quarter report may disappoint after the bell. But Starbucks is only the first of several restaurant companies set to report in the coming weeks, and investors are anticipating improving demand for dining out.
— CNBC’s Pia Singh, Lisa Kailai Han, Fred Imbert, Jenni Reid, Alex Harring, Samantha Subin, Leslie Josephs, Michael Wayland and Amelia Lucas contributed to this report.