US STOCKS-S&P, Nasdaq eye higher open as AI stocks recover, earnings roll in

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Updates prices before markets open

By Shashwat Chauhan and Sukriti Gupta

Jan 28 (Reuters) - The S&P 500 and the Nasdaq were set for a slightly higher open on Tuesday, as AI-linked shares recouped some of the previous session's sharp losses and a mixed bag of corporate earnings fueled volatility.

Monday's selloff followed Chinese startup DeepSeek's launch of artificial intelligence models it said were on a par or better than industry-leading rivals in the United States at a fraction of the cost.

AI chip leader Nvidia NVDA.O rose 3.4% in premarket trading, a day after $593 billion was wiped off its market value in the biggest single-session loss for any company.

Other AI-linked stocks also regained some ground, with Oracle ORCL.N and Broadcom AVGO.O rising 2.5% and 3.2%, respectively.

Power companies, which are expected to see a surge in demand from energy-intensive data centers needed to develop AI technology, were broadly higher after tumbling a day earlier. Vistra VST.N and GE Vernova GEV.N added 4.9% and 6.4%.

"We've been skeptical of the valuations and the recent moves in some of these names that are levered to the (AI) story," said Keith Buchanan, senior portfolio manager at GLOBALT Investments.

"The valuation gap between those names and the market had made those names vulnerable to a pullback."

The tech-heavy Nasdaq .IXIC dropped more than 3% on Monday, its worst single-day showing in more than a month, while the benchmark S&P 500 .SPX fell close to 1.5%.

At 08:33 a.m. ET, Dow E-minis 1YMcv1 were down 36 points, or 0.08%, S&P 500 E-minis EScv1 were up 12.25 points, or 0.2%, and Nasdaq 100 E-minis NQcv1 were up 58 points, or 0.27%

Boeing BA.N shares, last down 0.3%, were volatile after the planemaker reported its biggest annual loss since 2020.

Royal Caribbean RCL.N gained 4.6% as the cruise operator forecast annual profit largely above expectations, while Lockheed Martin LMT.N dropped 3.3% after the defense giant forecast 2025 profit below estimates.

Credit card-focused consumer banking firm Synchrony Financial SYF.N dipped 4.7% after forecasting lower net revenue for 2025, while aerospace and defense major RTX RTX.N gained 4.8% after posting a rise in quarterly profit.

Earnings from "Magnificent 7" members Microsoft MSFT.O, Facebook-parent Meta META.O, Apple AAPL.O and Tesla TSLA.O are due later this week.

Also in focus, the Federal Reserve is widely expected to hold its lending rate steady in its first interest-rate decision of the year on Wednesday, while the December reading of personal consumption expenditures (PCE) is scheduled for Friday.

A January consumer confidence reading is due at 10 a.m. ET later in the day.

U.S. President Donald Trump said late on Monday he plans to impose tariffs on imported computer chips, pharmaceuticals and steel.

A media report said newly elected Treasury secretary Scott Bessent has been pushing for new universal tariffs on U.S. imports to start at 2.5% and rise gradually by the same amount each month.

Markets have been on edge about Trump's proposed tariffs due to concerns they could worsen inflationary pressures and slow Fed rate cuts.