Market Overview
The Dow posted a solid gain, while the Nasdaq remained under pressure as semiconductor stocks struggled again, leaving the tech-heavy index about 10% below its intraday peak [1]. The S&P 500 index closed higher on Tuesday, boosted by gains in Boeing and Coca-Cola, but chip stocks experienced a significant decline as investors awaited quarterly reports from major tech firms [3].
Tech Earnings
Investors are awaiting quarterly reports from major tech firms, including Microsoft and Amazon, with their upcoming earnings announcements this week [3]. Meta's ad machine is printing money and analyst targets point to nearly 30% upside, yet something in the options market and recent earnings history suggests the smartest trade right now is doing nothing at all [5].
Key Developments
Meta Platforms Inc and BlackRock Inc have formed a joint venture to develop and operate a large-scale artificial intelligence data center campus in El Paso, Texas, as Meta looks to expand the infrastructure supporting its AI ambitions [7]. Nvidia Corporation and Meta Platforms Inc now appear on the same policy letter supporting open-weight AI, along with OpenAI and Alphabet Inc [8].