DeepSeek shock makes Big Tech’s job harder this earnings season | MarketTalk: What’s up today? | Swissquote

Show notes

The AI selloff reversed yesterday, Nvidia jumped nearly 9%. ASML this morning announced a set of better-than-expected results that could also help improve sentiment. But the news flow will be intense in the next hours and things could change rapidly. On the menu du jour, the Federal Reserve (Fed) is expected to announce no change to its rates later today, the Bank of Canada (BoC) is expected to cut its rate by 25bp, the European Central Bank (ECB) will probably do the same when it meets tomorrow.
On the earnings front, Meta, Microsoft and Tesla are due to announce their quarterly results after the bell.
Good news is that the DeepSeek shock is probably behind without further damage until investors and the Big Tech leaders get more clarity on if and how DeepSeek managed to create a model *this* cheap. But the bad news is, no matter if DeepSeek’s claims are true or not, Monday’s tech rout will taint the earnings season, and investors will be peakier about the AI spending announcements. Together, Amazon, Meta, Alphabet and Microsoft are expected to spend up to $300bn in AI this year, while the earnings growth is expected to slow to less than 20% in 2025.
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