After the DeepSeek-induced ruction on Tuesday, Big Tech earnings reminded investors that it might be better to focus on companies already bringing in billions.
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribegross domestic product expanded by 2.3%
on an annualized and inflation-adjusted pace in the fourth quarter of 2024, the U.S. Commerce Department reported Thursday. The figure was lower than the 2.5% expected by economists surveyed by Dow Jones, and a drop from the 3.1% growth recorded in the third quarter. Still, the U.S. experienced healthy economic growth of 2.8% for the whole of 2024., the highest on record. That bump defrayed worries over declining iPhone sales, which fell 11% on an annual basis in the Greater China market.
A week packed with Big Tech earnings also reminded investors that it might be better to focus on companies already bringing in billions in revenue, while a healthy, albeit slightly disappointing, U.S. gross domestic product report fueled expectations that earnings growth will continue in 2025. Friday's the last trading day of January, and, unless a new artificial intelligence model that costs maybe $5 is unleashed on the world, the S&P 500 is likely to finish the month in the green. Despite DeepSeek resurfacing some deep-seated fears about lofty tech valuations, the S&P is having a promising start to the year.
Get the CNBC Daily Open report in your inbox every morning and keep up to date with the markets wherever you are.
Technology Microsoft Corp Softbank Group Corp Apple Inc STOXX 600 Markets World Markets United States Economic Events CNX Nifty Index Business News
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
DeepSeek vs. ChatGPT: Hands On With DeepSeek’s R1 ChatbotDeekSeek’s chatbot with the R1 model is a stunning release from the Chinese startup. While it’s an innovation in training efficiency, hallucinations still run rampant.
Read more »
China: AI’s Sputnik moment? A short Q and A on DeepSeekOn 20 January the Chinese start-up DeepSeek released its AI model DeepSeek-R1.
Read more »
DeepSeek Disruption: How Big Tech Companies Will RespondDeepSeek, a Chinese AI startup, has shaken up the tech industry with its efficient AI model development approach. This news piece analyzes the potential impact of DeepSeek on major tech companies as they report earnings, highlighting the unique challenges and opportunities each faces.
Read more »
Wall Street Relieved by Big Tech AI Spending Plans Despite DeepSeek's ImpactWall Street analysts are more optimistic about Nvidia after comments from Meta Platforms and Microsoft on earnings calls reassured investors that AI spending remains strong. DeepSeek's new AI reasoning model, R1, had caused a sell-off in tech stocks due to its efficiency and potential to reduce reliance on Nvidia's high-end chips. However, Meta and Microsoft's continued commitment to heavy AI investments, including significant GPU purchases, have alleviated concerns.
Read more »
Tech stocks mixed as Meta, Microsoft affirm big AI spending plans after DeepSeek turmoilKey tech stocks were a mixed bag in early trading Thursday after executives at Meta and Microsoft said they plan to keep pouring billions of dollars into AI – despite lingering anxiety over the lau…
Read more »
CNBC Daily Open: Nvidia plunges as DeepSeek triggers questions on its valueDeepSeek’s claims that it cost mere millions to build fanned fears that the huge investments into AI by U.S. firms are unwarranted and a bubble waiting to…
Read more »