Market Preview from Deepseek: Big Tech Earnings & FED's Meeting in Focus

Nasdaq 100 Index Futures Extend Losses to 3%, DEEPSEEK Sparks Concerns Over U.S. Tech Dominance

Pre-Market Plunge in Semiconductor Stocks:

• $ARM Holdings(ARM)$ : -7.3%

• $NVIDIA(NVDA)$ : -7%

• $Broadcom(AVGO)$ : -6.9%

• $SUPER MICRO COMPUTER INC(SMCI)$ : -6.4%

• $Taiwan Semiconductor Manufacturing(TSM)$ : -6.9%

• $Micron Technology(MU)$ : -5.73%

• $Qualcomm(QCOM)$ : -4.75%

• $Advanced Micro Devices(AMD)$ : -5.44%

• $Intel(INTC)$ : -3.7%

Analysts suggest that over $1 trillion in market value could be wiped out in U.S. stocks tonight.

I used Deepseek to draft a market preview for this week, and it was impressively fast.

I. Last Week's Market Recap

Last week, the three major U.S. stock indices showed mixed performance: the Dow rose slightly by 0.2%, the S&P 500 fell by 0.5%, and the Nasdaq dropped by 1.2%. Market sentiment was influenced by multiple factors, including geopolitical tensions, corporate earnings, and economic data.

II. This Week's Market Focus

This week, several key events are expected to significantly impact market trends:

1. Tech Giants' Earnings Reports:
   This week marks the peak of the tech earnings season, with major companies like $Microsoft(MSFT)$ , $Apple(AAPL)$ , $Amazon.com(AMZN)$, $Alphabet(GOOG)$ , and $Meta Platforms, Inc.(META)$ set to release their reports. Investors will closely watch their performance, particularly in the AI sector, as well as their future outlook.

2. Federal Reserve Interest Rate Decision:
   The Fed will announce its rate decision on Wednesday, with markets widely expecting rates to remain unchanged. Investors will focus on Fed Chair Jerome Powell's press conference for clues about future monetary policy.

3. Economic Data Releases:
   Key economic data will be released this week, including Q4 GDP estimates, December's PCE inflation data, and January's non-farm payroll report. These figures will provide insights into the health of the U.S. economy and may influence expectations for Fed policy.

III. Notable Company Movements

• $Tesla Motors(TSLA)$ :
  Tesla is set to report earnings on Wednesday, with investors focusing on Q4 delivery numbers, profit margins, and future guidance.

• $Boeing(BA)$ :
  Boeing announced delays in the delivery of its 737 MAX 10 aircraft, which could add to its financial pressures.

• $Intel(INTC)$ :

  Intel revealed plans to invest 20 billion in a new chip manufacturing facility in Ohio, aiming to expand its U.S. production capabilities.

IV. Macro Events

1. Geopolitical Tensions:
   The ongoing conflict in Ukraine continues to raise concerns about broader disruptions to global economic and financial markets.

2. U.S. Debt Ceiling Debate:
   Congress has yet to reach an agreement on raising the debt ceiling, raising fears of a potential U.S. government default and severe financial market repercussions.

V. Economic Data Schedule

• Monday: December New Home Sales

• Tuesday: January Consumer Confidence Index

• Wednesday: Fed Rate Decision, Q4 GDP Estimate

• Thursday: December PCE Inflation Data

• Friday: January Non-Farm Payroll Report

VI. Market Outlook

This week, U.S. stock markets are expected to experience heightened volatility. Investors will closely monitor tech earnings, the Fed's rate decision, and economic data. Market sentiment may be swayed by a mix of geopolitical developments, corporate earnings, and economic indicators. Investors are advised to remain cautious, stay informed on market dynamics, and make decisions aligned with their risk tolerance.