Market Overview
U.S. stocks rebounded on Tuesday, January 28, 2025, recovering some losses from the previous session’s selloff driven by AI-related uncertainty. Investors turned their focus to the Federal Reserve’s upcoming interest rate decision on Wednesday.- S&P 500: +0.9%
- Nasdaq Composite: +2.0% (boosted by a tech sector recovery)
- Dow Jones Industrial Average: +0.3%
Top Gainers
- Royal Caribbean (RCL) | +12%
- Shares of Royal Caribbean soared to an all-time high after the cruise operator posted stronger-than-expected fourth-quarter profits.
- The company also provided a bullish outlook for 2025, citing:
- Strong bookings and higher pricing.
- Record onboard revenue.
- New river cruise offerings.
- Competitors Carnival (CCL) +8.1% and Norwegian Cruise Line (NCLH) +7.8% also surged.
- CrowdStrike (CRWD) | +9.3%
- The cybersecurity firm hit a record high after reports surfaced that Chinese AI startup DeepSeek suffered a large-scale cyberattack.
- Rising concerns over AI-related security risks drove investor interest in cybersecurity stocks.
- Additionally, CrowdStrike’s Falcon platform achieved a perfect score in a real-world ransomware test, further boosting sentiment.
- Invesco (IVZ) | +9%
- The investment management firm beat quarterly sales and profit expectations, supported by:
- Strong asset inflows.
- Growing demand for exchange-traded funds (ETFs).
- Expansion in the Asia-Pacific region.
- The investment management firm beat quarterly sales and profit expectations, supported by:
Top Losers
- Lockheed Martin (LMT) | -9.2%
- Despite topping adjusted earnings estimates, the defense giant reported a decline in net sales and lower-than-expected 2025 profit guidance.
- Key challenges included:
- Delays in the F-35 fighter jet program.
- Supply chain constraints.
- Efficiency initiatives under the new administration affecting defense budgets.
- General Motors (GM) | -8.9%
- GM posted an unexpected net lossfor Q4 due to:
- A costly restructuring in China.
- The shutdown of its Cruise robotaxi division.
- Despite exceeding revenue and adjusted earnings forecasts, concerns about future profitability weighed on investor sentiment.
- GM posted an unexpected net lossfor Q4 due to:
- Hewlett Packard Enterprise (HPE) | -6.5%
- Shares fell after reports that the Justice Department may block its $14 billion acquisition of networking firm Juniper Networks (JNPR).
- The European Union has already approved the deal, but if the acquisition fails, HPE may face termination fees.
- Juniper Networks (JNPR) also declined 6.1%.
Sector Update
- Tech stocks rebounded, helping the Nasdaq surge 2% after Monday’s AI-driven selloff.
- Defense stocks struggled, with Lockheed Martin dragging down the sector due to F-35 program delays.
- Consumer discretionary stocks, particularly travel and leisure, rallied, led by Royal Caribbean.
Bond & Commodities Market
- U.S. 10-year Treasury yield: +1.4 basis points to 4.54%.
- U.S. 2-year Treasury yield: +1 basis point to 4.20%.
- West Texas Intermediate (WTI) crude oil: +0.9% to $73.89 per barrel.
Trading Volume
- Total volume: 13.87 billion shares traded across U.S. exchanges.
- Recent 20-day average: 15.5 billion shares, indicating slightly lower-than-average trading activity.