CNBC Business News Update - Market Close: A-I Stocks Weigh On Markets, Nvidia Sets Dubious Record, Fed Meeting And Corporate Earnings Ahead

Episode Date: January 27, 2025

The latest in business, financial, and market news and how it impacts your money, reported by CNBC's Peter Schacknow

I'm Peter Schach, now CNBC. than U.S. competitors. NVIDIA, the most prominent of the AI stocks, tumbled 17 percent Monday and set a one-day record by losing more than $600 billion in market value. Despite NVIDIA's 160-point drag, the Dow actually gained 289 points to close at 44,714, but the S&P 500 fell a percent and a half, and the Nasdaq took a 3.1 percent hit, its worst performance since mid-December. While investor attention was focused on AI Monday, there's plenty more to distract them for the rest of the week, including plenty of corporate earnings and a Fed meeting. Former Fed Vice Chairman Roger Ferguson says AI may well be a topic of discussion at the central bank's policy meeting Tuesday and Wednesday. I think the real question is, you know, is this AI going to

unleash, as we hope it does, another productivity boom, which would make things increase the potential growth rate and the Fed would have to manage through that. And so I don't think it's a short-term question. I think it really is, is this a tectonic shift, as with the last productivity boom, that gives the Fed some more flexibility. And one can hope that we can have higher growth with lower inflation. The Fed is expected to leave rates unchanged this time around despite pressure from President Trump to lower them. Among the earnings reports set for release Tuesday, the morning will bring the latest numbers from GM, Boeing, JetBlue, Lockheed Martin and Kimberly-Clark, and Starbucks will release its latest quarterly numbers after the closing bell. The government is out with December durable goods orders

and will get the latest data on home prices and consumer confidence. And Smithfield Foods, which went private in 2013, returns to the public markets with an IPO. Smithfield is the largest pork processor in the U.S. Peter Schach now, CNBC. Get tomorrow's big stock stories delivered to your inbox tonight when you subscribe to Stocks at Night, a free investing newsletter from CNBC.