Stock market started the week bearish due to re-think on AI spending, causing Nasdaq drop.

From Nasdaq: 2025-01-27 18:01:00

On Monday, January 27, 2025, the stock market was dominated by a bearish sentiment due to a re-think on AI spending. China’s DeepSeek AI open-source module reportedly cost $6 million but provided the desired AI experience. This news caused the Nasdaq to drop 3%, with NVIDIA losing 17% and Constellation Energy falling 20%.

New home sales in December exceeded expectations, with 698K new homes sold. The Northeast and West regions saw positive growth, while the South and Midwest regions had negative rates. There are still 494K new homes available on the market, equivalent to 8.5 months at the current sales rate.

Expect Case-Shiller home price data, Durable Goods Orders, and Consumer Confidence Index data on Tuesday. Earnings reports from Boeing, General Motors, Lockheed Martin, JetBlue, Royal Caribbean, and Starbucks are also expected. The big players like Microsoft and Tesla will report on Wednesday.

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Read more at Nasdaq: New Trading Week Starts in the Red