Nvidia CEO Jensen Huang delivers the keynote address at the Consumer Electronics Show 2025, in Las Vegas, Nevada, USA, on January 6, 2025.
Artur Widak | Anadolu | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open informs investors about everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Technology drags down the Nasdaq
American markets were mixed Monday. The S&P 500 and Dow Jones Industrial Average rose, but Nasdaq Composite fell amid a broad sell-off in technology. Pan-European Stoxx 600 index fell 0.55%, with most sectors in negative territory. UK borrowing costs rose on Monday, raising concerns reduction of public spending or further increase of taxes.
A potential new offer from US Steel
Cleveland Cliffs is a partner with a rival Nucor ua potential offer for US Steelwhose takeover by Japan Nippon steel was blocked by the White House earlier this month, sources told CNBC’s David Faber. The offer would be in the high stakes of $30. Nippon planned to buy US Steel for $55 a share in a deal valued at more than $14 billion.
Slowing Inflation in India
Annual consumer inflation in India in December amounted to 5.22%, according to data from the Ministry of Statistics and Program Implementation. The reading was lower than the 5.30% forecast in a Reuters poll of analysts, and the second month in a row that price growth has fallen. Softer inflation readings open room for the RBI to cut rates, amid slowing growth in the country.
Second blow to quantum stocks
Quantum computing shares sold off on Monday after Target Platforms CEO Mark Zuckerberg said Friday on Joe Rogan’s podcast that the technology is “pretty far from being a very useful paradigm.” Comments reinforce recent comment from Nvidia CEO Jensen Huang who suggested that PCs are likely 15 to 30 years.
[PRO] Rieder would buy 100% of Nasdaq
The Nasdaq Composite underperformed the other major indexes on Monday as investors abandoned technology names. BlackRock Rick Rieder, who is the firm’s global fixed income chief investment officer, told CNBC that he would “one hundred percent” buy a Nasdaq dip. Rieder explains his decision and to set the protection from the bottom side.
Conclusion
Technology stocks underperformed on Monday as investors took profits from the 2024 winner and looked for this year’s winner.
The Nasdaq Composite lost 0.38 percent. Big tech names popular with investors generally fell in the session on Monday. Palantir — that stocks with the best results in the S&P last year —slid 3.4%, while Nvidia lost 2%, building on its losses from last week. Nvidia fell nearly 6% during that period, while Palantir lost more than 15%.
“In our view it’s a necessary part of the correction phase and we’re probably further along in this correction than many investors think because many stocks peaked in late November, early December,” AXS Investments CEO Greg Bassuk said, adding that the jobs report “cemented” those concerns from Friday.
However, the S&P 500 rose 0.16% and the Dow Jones Industrial Average climbed 0.86% as investors rotated into non-tech stocks such as Amgen, Caterpillar and UnitedHealth.
That doesn’t mean these sectors will take over as market leaders anytime soon — or at all. Sector rotation is a common occurrence in the markets as investors secure their returns and look for the next stocks with growth potential. and against the background of rising rates puts more pressure on growth-oriented tech stocks than value stocks, which typically make up the Dow.
Furthermore, the AI craze isn’t over, judging by the latest earnings reports from TSMC and Foxconn, which operates as Hon Hai Precision Industry. Both companies saw revenue rise due to strong demand for AI-related products.
A long-term rotation of technology and artificial intelligence is unlikely. But one inside the field cannot be dismissed.
— CNBC’s Samantha Subin, Hakyung Kim and Brian Evans contributed to this report.
