CNBC Business News Update - Market Open: Stocks Tumble Amid AI Sell-Off, AT&T Bucks The Market Trend After Earnings, New Music Deal For Spotify

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 CMBC. 44,225. The S&P 500 sliding 1.8% or 110 points. The Nasdaq with a 3% drop or 626 points. Hightower chief investment strategist Stephanie Link says she's looking at this with at least some skepticism. There are still so many questions. Is the technology from DeepSeek really that much better? Will they be able to take share? And which companies are going to use DeepSeek to launch their massive AI initiatives? I'm not saying that they can't take some share, but I think the pie is big enough for all of these companies to not only survive, but to thrive. But for now, the impact on AI stocks is pronounced. NVIDIA is down more than 11% in early trading. Broadcom and Marvell

Technology are sliding about 11% each. The tech sell-off is also impacting the price of Bitcoin, with the digital currency dipping below the $100,000 mark to its lowest in 11 days. One standout stock this morning is AT&T, up 3.5% in the down market after the company reported better than expected profit and revenue for the fourth quarter. Its results were driven in part by strong growth in wireless subscriber additions. The government will be out shortly with December new home sales figures. Economists think new home sales rose 1.1% last month to an annual rate of 671,000 units. Universal Music Group has struck a new multi-year agreement with streaming service

Spotify for recorded music and music publishing. Universal is the world's biggest music label. 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. Sign up now at cnbc.com slash stocks at night.