Nvidia continued to decline after being significantly impacted by the launch of DeepSeek
The Dow and other major indices edged higher following earnings reports from tech giants Tesla $TSLA (TSLA), Meta $META (META), and Microsoft $MSFT (MSFT). However, AI stock Nvidia $NVDA (NVDA) dropped another 2%, continuing its decline after it was hit hard by the launch of DeepSeek’s efficient-yet-thrifty AI model.
By the afternoon, the Dow Jones Industrial Average had gained about 240 points, or 0.54%. The tech-heavy Nasdaq $NDAQ and S&P 500 rose by 0.18% and 0.53%, respectively. Meanwhile, the latest report on U.S. Gross Domestic Product (GDP) showed the economy grew at a 2.3% annualized, inflation-adjusted rate in the fourth quarter. This was slightly below economists’ expectations of a 2.5% increase.
Investors are also awaiting earnings reports from Apple $AAPL (AAPL), set to be released after the closing bell, along with financial updates from payment giants Mastercard $MA (MA) and Visa $V (V).
Tesla (TSLA) shares rose despite fourth-quarter revenue and other metrics falling short of Wall Street expectations. The Austin, Texas-based electric vehicle maker reported fourth-quarter revenue of $25.7 billion, up 2% compared to last year’s $25.2 billion. But analysts had expected $27.2 billion, according to estimates compiled by FactSet (FDS).
Automotive revenue fell by 8% during the September to December quarter to $19.8 billion, but it still accounted for the vast majority of Tesla’s income. Sales grew year-over-year but failed to meet Wall Street’s expectations and push Tesla over the finish line to reach its goal of 1.8 million units sold, which would have matched 2023's deliveries.
—William Gavin contributed to the article
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