The U.S. stock market dipped on a shaky start to the week after Wall Street saw its best opening in months earlier this week. The tech-heavy Nasdaq Composite (NQ) fell 1% intraday, while the S&P 500 (^GSPX) dropped 1%, marking a decline from their recent highs. Major tech companies like Nvidia (NVDA.O), Apple (AAPL.O), and NVIDIA’s U.S. counterpart fell sharply as fears of an AI-driven global shakeout loomed.
Nvidia’s stock plummeted 17%, its biggest one-day drop ever, after reports of DeepSeek’s performance. The Chinese firm rival to Nvidia’s dominance in artificial intelligence caused a sell-off across the tech sector, with US-based chipmakers falling by over 9%. Power companies also dropped sharply as energy demands from AI-fueled data centers increased.
Despite the broader market dip, Apple managed to recover on Monday, closing up 3% after its quarterly earnings report. Meanwhile, concerns about U.S. tariffs and global trade tensions added volatility to the markets. The Federal Reserve’s meeting later in the week will likely influence market direction as it considers rate hikes and economic outlooks.
The day ahead promises mixed developments with corporate earnings reports, key policy decisions, and ongoing geopolitical tensions shaping U.S. markets. For a deeper dive into what to watch, explore our Morning Bid newsletter.
Source: https://www.reuters.com/markets/us/global-markets-view-usa-2025-01-28