DeepSeek Undermines Robust Earnings And Economic Growth
Feb 02, 2025
Subscribe to newsletters to stay updated on the latest news and information. This week, earnings season is busy, with many companies reporting their financial results. Despite good earnings and economic growth, concerns about DeepSeek and President Trump's tariffs caused changes in the markets. DeepSeek is a Chinese company that developed a new artificial intelligence technology, creating uncertainty in the technology sector. However, this innovation could lead to lower-cost AI models in the future.
The Magnificent 7, including companies like Microsoft, Meta Platforms, and Apple, reported their earnings last week. Some companies did better than expected, while others faced challenges. The overall earnings growth rate for the quarter is positive, showing improvement from previous expectations. The financial sector is expected to show the fastest growth, while the energy sector is facing a decline.
Sales growth is closely linked to economic growth, with the current growth on track with expectations. The Federal Reserve is not expected to change interest rates soon due to economic momentum and inflation levels. However, uncertainties surrounding tariffs and global economic growth could impact future decisions.
This week, companies like Alphabet and Amazon will report their earnings, providing insight into the market's performance. Investors will continue to monitor the situation closely, especially with ongoing developments in technology and global trade policies. Stay informed and be prepared for potential market fluctuations in the coming days.