Market Overview
The Nasdaq jumped over 1% as chip stocks rallied, led by strong earnings outlook and AI-driven optimism [2]. The S&P 500 and Dow also ended higher, with the Dow hitting record highs [1]. However, Microsoft fell after announcing job cuts, and investors remain cautious about Fed policy.
Tech Stocks
Nvidia led the charge in tech stocks, but faces ASIC competition as customers build AI chips [3]. Meta Platforms remains fundamentally strong, with robust revenue growth and expanding operating income [6]. Meanwhile, Tesla rose 6% on robotaxi and delivery momentum, leading a broad electric-vehicle rebound [10].
Earnings Preview
Microsoft's Q4 results are upcoming, with Azure and AI investments as focal points [4]. The company's shares are underperforming, with monthly losses of about 6.5%. Investors are also eyeing Nvidia's performance, as the company owns the AI compute market but faces threats from customers seeking to reduce costs [9].