Stock Market Today: Stocks Surge Ahead of Fed
Tech stocks led the way higher Tuesday as Wall Street looked ahead to Wednesday's Fed announcement.
 
 
 
Joey Solitro
Stocks opened lower Tuesday but quickly found their way into positive territory. The tech sector saw the biggest gains as several mega caps bounced back from Monday's DeepSeek-related drubbing.
At the close, the tech-heavy Nasdaq Composite was up 2% at 19,733, the broader S&P 500 was 0.9% higher at 6,067, and the blue chip Dow Jones Industrial Average had added 0.3% to 44,850.
Nvidia (NVDA) was one of the more notable gainers on Tuesday after the artificial intelligence (AI) chipmaker shed nearly $600 billion in market value Monday – a record single-session loss for any U.S. stock. Today, though, NVDA shares rose 8.8%, recouping $253 billion in market cap.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
 
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Broadcom (AVGO) was another big loser Monday, but the mega-cap chipmaker gained 2.6% Tuesday after getting off to a shaky start.
Mark Malek, chief investment officer of Siebert, called yesterday's sell-off an overreaction. "Competition is what fuels technology innovation! DeepSeek developed an AI [model] in a short period of time with allegedly fewer resources than those used by the U.S.-based prototypes we have all been using to date."
He adds that this is "great news … for every AI behemoth out there who is probably already experimenting with similar models and will by now already be testing DeepSeek's method."
Lockheed Martin stock slumps after earnings miss
Looking at the earnings calendar, Lockheed Martin (LMT) stock declined 9.2% after the aerospace company missed top- and bottom-line expectations for its fourth quarter and provided a mixed forecast for 2025.
Still, plenty of analysts think LMT stock remains a Buy after earnings. Among them is Truist Securities analyst Michael Ciarmoli, who says Lockheed Martin's recent share-price weakness – the stock is down more than 20% since late October – creates a "compelling entry point."
He adds that fears related to potential cost cuts recommended by the Department of Government Efficiency (DOGE) are "overblown" and that "defense spending will continue to rise in coming periods."
GM stock gets a post-earnings upgrade
General Motors (GM) stock sank 8.9% as tariff concerns offset the automaker's fourth-quarter beat and encouraging outlook.
The results were enough for CFRA Research analyst Garrett Nelson to upgrade the consumer discretionary stock to Hold from Sell. Nelson notes that this was General Motors' 10th straight bottom-line beat and came "despite concerns that GM's year-over-year comparisons should be much more difficult in 2025 and the company could lose market share in the near- and intermediate-term due to its lack of hybrid vehicle offerings."
However, Nelson warns that "GM's automotive free cash flow should be about $2 billion lower in 2025, as capex remains significant."
Boeing jumps on upbeat cash flow outlook
Boeing (BA) stock rallied 1.6% even after the aircraft maker came up short of top- and bottom-line expectations for its fourth quarter. The company prereleased the results last week, which likely took the sting out of the miss.
This also allowed investors to focus on Boeing CEO Kelly Ortberg's outlook for free cash flow to be positive in the second half of this year.
Durable goods slip, Fed announcement on tap
In economic news, durable goods decreased 2.2% in December compared to the prior month to $276.1 billion, according to the Census Bureau. Excluding transportation, new orders were up 0.3%.
"Durable goods orders surprisingly fell at the end of last year, though that was due to the decline in volatile transportation bookings," says Priscilla Thiagamoorthy, senior economist at BMO Capital Markets. "The underlying trend has turned up recently, improving prospects for the struggling factory sector."
Next up is tomorrow's policy announcement from the Federal Reserve. The central bank is widely expected to keep interest rates unchanged. Wall Street will be tuned into Fed Chair Jerome Powell's press conference for clues on what's in store in the months ahead. You can follow along with Kiplinger's Federal Reserve blog for live updates and analysis.
Related content
- Earnings Season: Live Updates and Commentary
- What Could Derail the Economy This Year?
- How AI Will Impact Our Lives in 2025 and Beyond
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
- Joey SolitroContributor
- 
 What Netflix Stock's 10-for-1 Split Means for Investors What Netflix Stock's 10-for-1 Split Means for InvestorsNetflix announced its long-awaited stock split after Thursday's close. NFLX will start trading on a split-adjusted basis ahead of the November 17 open. 
- 
 Stocks Sink with Meta, Microsoft: Stock Market Today Stocks Sink with Meta, Microsoft: Stock Market TodayAlphabet was a bright light among the Magnificent 7 stocks today after the Google parent's quarterly revenue topped $100 billion for the first time. 
- 
 What Netflix Stock's 10-for-1 Split Means for Investors What Netflix Stock's 10-for-1 Split Means for InvestorsNetflix announced its long-awaited stock split after Thursday's close. NFLX will start trading on a split-adjusted basis ahead of the November 17 open. 
- 
 Stocks Sink with Meta, Microsoft: Stock Market Today Stocks Sink with Meta, Microsoft: Stock Market TodayAlphabet was a bright light among the Magnificent 7 stocks today after the Google parent's quarterly revenue topped $100 billion for the first time. 
- 
 Five Downsides of Dividend Investing for Retirees, From a Financial Planner Five Downsides of Dividend Investing for Retirees, From a Financial PlannerCan you rely on dividend-paying stocks for retirement income? You'd have to be extremely wealthy — and even then, the downsides could be considerable. 
- 
 Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market Today Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market TodayNvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500. 
- 
 I'm a CPA: Control These Three Levers to Keep Your Retirement on Track I'm a CPA: Control These Three Levers to Keep Your Retirement on TrackThink of investing in terms of time, savings and risk. By carefully monitoring all three, you'll keep your retirement plans heading in the right direction. 
- 
 Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market Today Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap. 
- 
 Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong Buy Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks. 
- 
 Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs) Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.