Jensen Huang, chief executive officer of Nvidia Corp., speaks during the 2026 CES event in Las Vegas, Nevada, US, on Tuesday, Jan. 6, 2026.
Bridget Bennett | Bloomberg | Getty Images
Advanced Micro Devices reported fourth-quarter earnings on Tuesday after the bell. The chipmaker beat Wall Street’s revenue and profit estimates, but shares plunged more than 8% in extended trading because its guidance came up short of some expectations.
AMD’s main rival, Nvidia, is facing difficulties of its own. CEO Jensen Huang told CNBC’s Jim Cramer on Tuesday that there’s “no drama involved” between the company and OpenAI. “Everything’s on track,” he added.
Huang was referring to Nvidia’s $100 billion investment in OpenAI, struck in September, which is “on ice,” reported The Wall Street Journal on Saturday. Nvidia shares fell more than 3.4% on Tuesday.
Major U.S. indexes had a bad day as well. The S&P 500 lost 0.84% and the Dow Jones Industrial Average ended 0.34% lower — despite rising as much as 0.5% earlier in the session to touch a new record.
The tech-heavy Nasdaq Composite slumped 1.43%, weighed by software stocks, such as ServiceNow and Salesforce, with both tumbling nearly 7% — investors appear to be factoring in that artificial intelligence could diminish the value of those companies.
Asset firms with significant private credit market holdings, such as Blue Owl, Ares Management and KKR, also sank. The software industry makes up around 20% of private loans from direct lenders, according to iCapital, an alternative investment company.
There was at least one positive development overnight. U.S. President Donald Trump signed into law a bill to fund the federal government, which had been on a brief shutdown since Saturday morning.
For the day ahead, look out for PMI releases from Japan, China and India.
What you need to know today
The xAI and SpaceX merger is the biggest of all time, with the deal valuing the combined company at $1.25 trillion. Breaking down the number, SpaceX is valued at $1 trillion and xAI at $250 billion, according to documents viewed by CNBC.
Disney names Josh D’Amaro as its next CEO. D’Amaro is currently chairman of Disney Experiences, and will succeed Bob Iger on March 18 at Disney’s annual meeting.
Stephen Miran resigns from his White House post as chair of the Council of Economic Advisers, CNBC confirmed. He had been on leave from this post since September 2025 — when he became a member of the Federal Reserve Board of Governors.
U.S. software and asset management stocks slump, driving major indexes lower on Tuesday. Bitcoin continued its descent, but spot gold and spot silver regained some of their losses. Europe’s Stoxx 600 ticked up 0.1%.
[PRO] JPMorgan’s list of favorite stocks for February adds an industrial real estate owner but removes some retailers. The Wall Street bank’s analyst focus list looks at growth, income, value and short investment strategies.
And finally…
Ray Dalio warns the world is ‘on the brink’ of a capital war
Legendary investor Ray Dalio warned on Tuesday that the world is “on the brink” of a capital war, amid simmering geopolitical tensions and volatile capital markets.
Speaking to CNBC’s Dan Murphy on stage at the World Governments Summit in Dubai, United Arab Emirates, Dalio said we are close to teetering into capital war territory — when money is weaponized using measures like trade embargoes, blocking access to capital markets, or using ownership of debt as leverage.
He pointed to recent escalating tensions over the Trump administration’s push to bring Greenland — a Danish territory — under Washington’s control.
— Chloe Taylor