Dow Jones futures fell Sunday night, along with S&P 500 futures and especially Nasdaq futures, amid concerns over AI progress from China's DeepSeek. Nvidia, Broadcom, Meta and several other AI-related stocks were indicated lower overnight.
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Why Tech Stocks Dropped Monday
Technology stocks struggled across the board on Monday, including declines among all but one of the Magnificent 7 firms and a big hit to quantum computing stocks.
Nvidia still has the stock-boosting power, but its strength may be waning as some investors wonder how long it will last.
Nvidia, AMD, and Broadcom sold off after the Biden Administration released new AI chip export rules late Friday.
Indexes closed lower on Thursday, with the tech-heavy Nasdaq falling almost 1%, led by a slide in mega-cap tech stocks like Apple and Nvidia ... after the Federal Reserve back rate-cut ...
Quantum Computing didn't have any news of its own to report, but the company is even smaller than D-Wave, with less than $1 million in revenue over the last four quarters. Its stock has soared even higher than D-Wave's over the last year, a disconnect that could lead to a continued decline in Quantum Computing's shares.
Tech was headed for a rough start to the week. Futures tracking the Nasdaq 100 tumbled 1.3% as investors fretted that a combination of sticky inflation and a red-hot labor market will mean the Federal Reserve doesn't have to cut interest rates at all in 2025.
Drops for Nvidia and other superstar stocks are dragging U.S. stock indexes lower on Monday and keeping Wall Street stuck in its weekslong rut.
Australian shares are poised for a cautious start as investors worry about China’s AI progress, the Federal Reserve meeting and key local inflation data.
There is little sign of crimped demand for equities among individual investors, who remain bullish after two years of blockbuster gains.
The Dow Jones Industrial Average fell 140.82 points, or 0.32%, to 44,424.25, the S&P 500 lost 17.47 points, or 0.29%, to 6,101.24 and the Nasdaq Composite lost 99.38 points, or 0.50%, to 19,954.30.
The S&P 500 ( ^GSPC) jumped over 0.5% to secure its first all-time closing high of 2025. The Dow Jones Industrial Average ( ^DJI) popped around 0.9%, while the Nasdaq Composite ( ^IXIC) recovered from earlier session losses to finish the day up about 0.2%.