Nasdaq Tech Rally: Alphabet +2.4%, Nvidia +1.4% 01/13/26
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Nasdaq Tech Rally: Alphabet +2.4%, Nvidia +1.4% 01/13/26
Key Stories:
- The Nasdaq Composite saw a turnaround in early Tuesday afternoon trading, finding a significant boost from some of the biggest names in technology. While the Dow Jones Industrial Average faced headwinds, dropping 275 points, or 0.6%, largely due to struggles among its larger components like cloud software giant Salesforce, payments technology leader Visa, and banking titan JPMorgan Chase, the tech-heavy Nasdaq pushed higher. Driving this upward momentum were strong performances from Alphabet, Google’s parent company, which climbed 2.4%, and chipmaking powerhouse Nvidia, up 1.4%. This divergent performance highlights the continued investor appetite for growth-oriented tech stocks, even as broader market indexes grapple with broader economic concerns. Read more
- Now, shifting our focus to the financial sector, one of the names weighing on the Dow was JPMorgan Chase. The banking giant recently reached a significant deal to take over the Apple Card account from Goldman Sachs. However, the costs associated with this substantial transfer weighed heavily on JPMorgan Chase’s fourth-quarter earnings figures. This move alone presents a complex financial challenge for the bank. Adding to the sector’s concerns, former President Trump recently suggested a potential 10% cap on credit card fees, a proposal that, according to HSBC’s Head of US Financials Research Saul Martinez, could render a significant portion of the credit card industry unprofitable. Investors are clearly watching how this deal impacts JPM’s bottom line and the potential regulatory headwinds facing the broader credit lending space. Read more
- Sticking with the critical theme of credit and the banking sector, the financial industry is also grappling with potential future regulatory challenges. While JPMorgan Chase’s recent acquisition of the Apple Card account from Goldman Sachs incurred considerable costs that impacted its fourth-quarter earnings, a larger, industry-wide concern looms. Former President Trump’s recent suggestion of a 10% cap on credit card fees has sent ripples through the market. Experts like Saul Martinez, HSBC’s Head of US Financials Research, warn that such a policy could make a large part of the credit card business fundamentally unprofitable. This proposal highlights significant regulatory uncertainty for credit lenders and the broader financial sector, suggesting investors need to closely monitor political developments alongside traditional earnings reports. Read more
Keywords: Alphabet, Apple Card, Dow Jones, Goldman Sachs, HSBC, JPMorgan Chase, Nasdaq Composite, Nvidia, Q4 earnings, Salesforce, Trump, Visa, banking industry, credit card fees, credit cards, credit lenders, deal costs, earnings, financial regulation, financial sector, growth stocks, market update, profitability, regulatory uncertainty, tech rally