Privately held companies have been left to develop AI technology at breakneck speed, giving rise to systems like Microsoft-backed OpenAI’s ChatGPT and Google’s Bard.
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Evergrande trading halted
In Asia, trading of Evergrande's shares was halted after Hong Kong's high court ordered the liquidation of the embattled Chinese property developer. The Hang Seng index rose over 1.21%, while China's CSI 300 index fell. Other regional markets were mostly up. On Wall Street, the S&P 500 and Nasdaq Composite finished Friday slightly lower, ending a six-day winning streak. The blue-chip Dow bucked the trend. Despite the mixed session, all three indexes finished higher on the week, thanks to encouraging economic data.
China's luxury rebound
China's luxury sales market is bouncing back. It's not quite back to 2021 levels yet — but there are new areas of opportunities. The latest results from LVMH showed that even though overseas travel has resumed, more of China's consumers are buying luxury goods at home.
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Tech layoffs surge
Silicon Valley's tech companies are slashing headcount at a rapid pace. Since the start of January, some 23,670 workers have been laid off from 85 tech companies, according to the website Layoffs.fyi. Some are laying off staff in parts of the business to invest more heavily in developing AI products.
Oil prices advance
Oil prices climbed in early trading Monday after missiles launched by Iran-backed militants on the weekend killed three U.S. troops in Jordan. It comes amid rising tensions in the Middle East since Israel's war with Hamas began on Oct. 7. Global benchmark Brent was up 0.57% at $84.03 a barrel, while the U.S. West Texas Intermediate futures was higher 0.6% to $78.48 per barrel.
[PRO] Is Tesla still attractive?
Kingsley Jones, CIO and founder of boutique advisory firm Jevons Global, isn't bullish on Tesla's stock, given its growing competition from China's electric vehicle makers. Tesla will probably face margin pressure in the U.S. if it doesn't get both its prices and costs down, Jones added, offering three alternatives.
Money Report
The bottom line
It's going to be a big week for Wall Street's Big Tech companies.
The majority of the so-called "Magnificent 7" will report results in the coming days: Alphabet, Amazon, Apple, Meta, and Microsoft.
With all the hype around generative artificial intelligence, it's no surprise investor interest is riding high on Big Tech's earnings.
Microsoft, including its competitors Meta and Alphabet-owned Google, have ramped up efforts in AI technology to integrate its applications into their offerings. To win the AI race, Silicon Valley has already laid off more than 23,000 workers in January so far, as companies bet big on AI and invest more heavily in developing that tech.
Investors will be curious to see whether Big Tech's AI investments and strategic layoffs bear fruit on the earnings front.
The S&P 500 is trading at a record and the Nasdaq is at its highest in two years on Big Tech stocks. Alphabet shares reached a new pinnacle on Thursday, as did Microsoft, which ran past $3 trillion in market cap.
High profile earnings aside, the Fed's policy meeting is also taking place this week. Investors don't expect any rate move but will look for clues on when officials might cut interest rates.
— CNBC's Ashley Capoot and Jonathan Vanian contributed to this report.
