The Nasdaq and S&P 500 are looking better today, removing some losses from Monday’s tech sell-off. Concerns over Big Tech’s ability to deliver on AI-fueled growth made everyone anxious, and the buzz around Chinese startup DeepSeek’s cost-competitive AI model sounded ominous.
The prospect of losing ground in AI leadership rattled traders, sending superstar stock Nvidia (NVDA) tumbling 17% and erasing a record $589 billion in market value.
But Tuesday has brought some relief.
Nvidia so far has rebounded more than 2.8% into this afternoon after its staggering drop. But the broader market remains cautious, with analysts questioning whether high earnings expectations for chipmakers and other tech names are sustainable.
And now all eyes will turn to the Federal Reserve, which kicks off its two-day policy meeting today. With inflation risks mounting, including those tied to Trump’s tariff threats, the Fed is expected to hold interest rates steady. Recent strong economic data supports this, but we will be watching closely for any signals about future rate moves.
As investors navigate a landscape shaped by AI innovation and political uncertainty, the interplay between tech performance, policy shifts and central bank decisions will likely keep us on our toes in the weeks ahead.
A Stock to Watch: The Trade Desk (TTD)
The Trade Desk (TTD) is a stock to keep on your watchlist this week, as it historically tends to be bullish at the end of the first month of the year. This seasonal trend makes it potentially a good opportunity for the last days of January and slightly beyond.
Buying TTD on Jan. 29 and holding for 21 days has delivered an impressive average return of 12.7% over the past several years. While past performance isn’t a guarantee, it’s definitely worth considering as we navigate the end of the month.
Finally, the road ahead for investors looks rocky, with AI competition heating up and tariff talk always stirring fresh uncertainty.
As tech struggles to prove its staying power and the Fed weighs its next steps, the market’s focus remains split between innovation and policy. How these forces shake out will set the tone for what’s next — stay tuned!
There’s a lot yet to come — including a stock I’m going to put $100k in as soon as the signal hits.
Learn more at 1 p.m. ET on Thursday!
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. There’s a Massive Opportunity Building Up on 1 Stock…
When a positive signal fires up on it, I’ll be putting $100k on the line to trade it! Join me at 1 p.m. ET on Thursday, Jan. 30, to get the stock details for free.
