SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Wall Street recovers some of the AI slump

Wall Street recovers partially from the Chinese AI influenza. The technology-heavy Nasdaq composite index and chip manufacturer Nvidia climbed again after Monday's price slaughter among AI-related technology stocks.

» Published: January 28 2025

Wall Street recovers some of the AI slump
Photo: Frank Franklin II/AP/TT

Now the dust is settling after Monday's expected AI backlash, and despite still believing in AI-driven growth, maybe future investments in this sector won't be as easy as they have been over the past two years, says Emily Bowersock Hill, at analysis firm Bowersock Capital Partners, to CNBC.

At Tuesday's close, Nvidia – the flagship name in the hitherto US-dominated hype around AI investments – rose 8.8 percent. This after Monday's price collapse of 16.9 percent – which wiped out SEK 6,500 billion in market value.

Industry colleague Broadcom, which plummeted 17.4 percent the previous day, rose 2.6 percent.

Good day for the tech sector

The really big tech companies generally had a good day.

iPhone manufacturer Apple climbed 3.7 percent, software giant Microsoft 2.9 percent, Meta (Facebook) 2.2 percent, Google owner Alphabet 1.8 percent, e-commerce company Amazon 1.2 percent, and electric car manufacturer Tesla 0.2 percent.

This meant that Nasdaq's tech-heavy composite index rose 2 percent. The broad S&P 500 index rose 0.9 percent and the Dow Jones industrial index 0.3 percent.

The same turnaround can also be seen in the European market on Tuesday, where German Siemens Energy – which plummeted 20 percent on Monday – rose 7.5 percent.

Heavy news

Monday's price collapse came after Chinese Deepseek surprised the market with the launch of a low-cost AI model that matches today's American – and much more expensive AI models.

Deepseek's breakthrough – with significantly simpler chips than the latest from Nvidia – raises big question marks about the need for the large investments in AI infrastructure that have previously been on the cards in the US.

The turbulence comes ahead of heavy economic news later in the week.

These include Wednesday's interest rate decision from the US Federal Reserve and quarterly reports from Tesla, Meta, and Microsoft on Wednesday and from Apple on Thursday.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Wallenberg does not believe in state rescue of Northvolt

Wallenberg does not believe in state rescue of Northvolt

Hard to find an apprenticeship for vocational programs

Hard to find an apprenticeship for vocational programs

Historic Strong Quarter for Skistar

Historic Strong Quarter for Skistar

Forecast: Cheap Electricity Due to High Water Levels

Forecast: Cheap Electricity Due to High Water Levels

Swedish trade unique - "can be price-increasing"

Swedish trade unique - "can be price-increasing"

Mostly Upwards on Asian Stock Exchanges

Mostly Upwards on Asian Stock Exchanges

Japan leaves the interest rate unchanged

Japan leaves the interest rate unchanged

SBAB: The Central Bank lowers the interest rate after the summer

SBAB: The Central Bank lowers the interest rate after the summer

Nvidia rolls into GM's vehicles

Nvidia rolls into GM's vehicles

Now Northvolt's layoffs begin: "Tough days"

Now Northvolt's layoffs begin: "Tough days"

Wall Street fell again – Tesla continues to plummet

Wall Street fell again – Tesla continues to plummet

New confidence for the oil fund's CEO

New confidence for the oil fund's CEO

Heavy decision on Northvolt this week

Heavy decision on Northvolt this week

Wage Negotiations in Final Stage – New Bids on the Way

Wage Negotiations in Final Stage – New Bids on the Way

Mortgage lenders raise interest rates

Mortgage lenders raise interest rates

The Hackers Struck When the Tax Return Opened

The Hackers Struck When the Tax Return Opened

New York dragged Stockholm Stock Exchange down

New York dragged Stockholm Stock Exchange down

Tesla competitor promises record-fast charging

Tesla competitor promises record-fast charging

Get your tax refund before Easter

Get your tax refund before Easter

Still Happy Faces on Asian Stock Exchanges

Still Happy Faces on Asian Stock Exchanges

Alphabet buys company for 333 billion kronor

Alphabet buys company for 333 billion kronor

This is how it went for the "party Swedes"

This is how it went for the "party Swedes"

The US stock market rose for the second day in a row

The US stock market rose for the second day in a row

Swedish drug candidate classified in the USA

Swedish drug candidate classified in the USA

Oil price rises after Trump's threats against Iran

Oil price rises after Trump's threats against Iran

Up to 7,500 jobs away from Audi

Up to 7,500 jobs away from Audi

USA's retail trade below expectations

USA's retail trade below expectations

Klarna's giant deal in the USA - "game changer"

Klarna's giant deal in the USA - "game changer"

Major Bank Raises Mortgage Interest Rates

Major Bank Raises Mortgage Interest Rates

Busch hopes for battery support from the EU

Busch hopes for battery support from the EU

OECD: Trump's Trade War Slows Down the Global Economy

OECD: Trump's Trade War Slows Down the Global Economy

Clothing Chain Applies for Bankruptcy Protection

Clothing Chain Applies for Bankruptcy Protection

Astra Zeneca makes multi-billion purchase

Astra Zeneca makes multi-billion purchase

The Stockholm Stock Exchange closed up

The Stockholm Stock Exchange closed up

These educations give you a job

These educations give you a job

Cheerful start on Asia's stock exchanges

Cheerful start on Asia's stock exchanges

Egg smuggling to the USA increases sharply

Egg smuggling to the USA increases sharply

Vance believes Tiktok will meet the deadline

Vance believes Tiktok will meet the deadline

This is how China will get the economy going

This is how China will get the economy going

China's Green Energy Boom - Like 320 Nuclear Reactors

China's Green Energy Boom - Like 320 Nuclear Reactors