Last Updated: 4:08 PM EST
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Stock indices finished today’s trading session in the green as AI stocks rebounded from yesterday’s DeepSeek-induced selloff. As a result, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.59%, 0.92%, and 0.31%, respectively.
Separately, according to the S&P CoreLogic Case-Shiller Home Price Index, home price growth in the U.S. slightly increased in November. The index rose 0.4% month-over-month to beat the consensus estimate of 0.3%. However, despite this gain, home price growth remains below historical averages.
The 20-city composite index showed a 4.3% year-over-year increase in home prices, slightly higher than the expected 4.1% gain. However, on a month-over-month basis, the unadjusted index edged down 0.1%. This mixed performance suggests that the housing market is still experiencing a slowdown.
In addition, regional variations in home price growth were notable, with New York posting the highest annual gain of 7.3%. Chicago and Washington also saw significant gains, with increases of 6.2% and 5.9%, respectively. In contrast, Tampa experienced a 0.4% year-over-year decline in home prices, which marked the first annual drop for any market in over a year.
First Published: 3:59 AM EST
U.S. stock futures traded mixed on Tuesday morning after yesterday’s sell-off triggered by the emergence of DeepSeek, a Chinese startup that revealed a powerful and cost-effective AI model. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) were up 0.35% and 0.11%, respectively, at 3:46 a.m. EST, January 28, while the Dow Jones Industrial Average (DJIA) futures were down 0.1%.
On Monday, the stock market witnessed a sharp decline, primarily driven by investor concerns about China’s growing AI advances. The tech-heavy Nasdaq Composite (NDAQ) and the S&P 500 were down by 3.1% and 1.5%, respectively. However, the Dow Jones recovered from initial losses and closed with a modest gain of 0.7%.
Further, the DeepSeek development heavily impacted the valuations of AI-focused companies, particularly Nvidia (NVDA), which suffered a historic one-day market cap loss of about $600 billion.
Investors are now awaiting key economic data releases, including the Consumer Confidence report for January, due today. Also, the Federal Reserve will commence its two-day policy meeting today and is scheduled to announce its interest rate decision tomorrow. According to the CME Group’s (CME) FedWatch tool, there is a 97% probability that the central bank will leave interest rates unchanged.
On the corporate front, traders will be focused on earnings reports from companies like Starbucks (SBUX), General Motors (GM), Lockheed Martin (LMT), RTX (RTX), JetBlue Airways (JBLU), and Boeing (BA), due today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.559%. Simultaneously, WTI crude oil futures are trending higher, hovering near $73.56 per barrel as of the last check.
Elsewhere, European indices opened higher on Tuesday following a weak session yesterday fueled by concerns over a potential AI breakthrough in China.
Asia-Pacific Markets Ended Mixed on Tuesday
Asia-Pacific indices were mixed today following a global turmoil caused by DeepSeek’s competitive AI model.
At the same time, Japan’s Topix and Nikkei indices were down 0.04% and 1.39%, respectively. However, Hong Kong’s Hang Seng Index was up 0.14%.
Investors should note that the China stock market will remain closed until February 4 on account of the Chinese New Year.
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