Stock market today: Nasdaq clobbered, Nvidia sinks 17% while Dow stages comeback as AI fears shake markets

Stock market today: Nasdaq clobbered, Nvidia sinks 17% while Dow stages comeback as AI fears shake markets

And on Wall Street, Constellation Energy lost more than a fifth of its value, 20.8%. The company has said it would restart the shuttered Three Mile Island nuclear power plant to supply power for data centers for Microsoft. In Tokyo, Japan’s Softbank Group Corp. lost 8.3% to pull closer to where it was before leaping on an announcement trumpeted by the White House that it was joining a partnership to invest up to $500 billion in AI infrastructure. Meanwhile, the Federal Reserve will hold its first policy meeting of 2025 this week, with officials already on watch for quick-fire moves by Trump that could pose challenges to the central bank. The president has called for the Fed to lower interest rates, signaling a coming clash with policymakers, who begin their two-day gathering on Tuesday. Please bear with us as we address this and restore your personalized lists.

• Once Nixon’s attempt to spy on his opponents became public he was forced to resign and overall the stock market fell by 47% during his incumbency.
• The sell-off has ensnared megacap giants such as Nvidia and Microsoft, which are heavily weighted in US indexes.
• “These companies have deep pockets and talent,” Nancy Tengler, the chief investment officer of Laffer Tengler Investments, said in a note, pointing to reports that Meta had already set up war rooms to analyze DeepSeek.
• Their immense sizes give them huge sway over the S&P 500 and other indexes that give more weight to bigger companies.
• However, the Dow, S&P 500 and Nasdaq still are tracking for weekly gains after solid sessions on Monday and Tuesday.
• “We will soon find out if all the claims are true and it is my expectation that we will also learn how quickly US firms can adapt.”
• The catalyst for the sell-off is the recent success of DeepSeek, a Chinese AI startup that has raised questions about the sector’s future investment needs.

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• The third crash occurred in December 2007 when George W Bush was the president.
• “DeepSeek is a word you’ve heard all weekend, and you’ll hear all day today,” Jeff Kilburg, the CEO of KKM Financial, told CNBC on Monday.
• However, long term trends in the US stock market reveal a pattern suggesting that stock prices might be quite vulnerable during his second term.
• When bonds are paying more in interest, they put downward pressure on stock prices.
• The pressure is on companies to keep delivering strong profits, particularly after a recent jump in Treasury yields.

Their voters are more likely to be optimistic about the prospects for the economy, and therefore to take risks when investing in the stock market, when a Republican is in the White House. This occurred when the White House employed burglars to break into the Democrat party headquarters in the Watergate building in Washington DC. Once Nixon’s attempt to spy on his opponents became public he was forced to resign and overall the stock market fell by 47% during his incumbency.

Dow Jones 30 Industrial

Technology stocks were hit hard on Monday as traders reacted to the unveiling of an artificial-intelligence model from China that investors fear could threaten the dominance of some of the largest US players. President Donald Trump recently announced the launch of Stargate, a Texas-based initiative that combines some of the leading figures in artificial intelligence in an attempt to keep the industry under U.S. control. If the drop holds, Monday will mark Nvidia’s worst day since March 2020, when the stock fell 18.5% in a single session. The Dow Jones Industrial Average briefly rallied to breakeven on Monday morning before dropping 50 points, as the broader market continued to face pressure. The S&P 500 fell 1.4%, and the Nasdaq Composite saw a larger drop of 2.3%.

Nvidia is set to experience its biggest daily drop in nearly five years, as shares of the artificial intelligence leader plunged more than 13% in morning trading. DeepSeek, a Hangzhou-based startup, is attracting significant attention in the AI industry. The company’s controlling shareholder is Liang Wenfeng, the co-founder of High-Flyer, a quantitative hedge fund based in China. According to Chinese corporate records, High-Flyer announced in March 2023 that it was shifting focus from trading to building an independent research group dedicated to exploring Artificial General Intelligence (AGI).

More than 80% of stocks in the Nasdaq 100 retreated in Monday’s premarket, highlighting a significant downturn in tech stocks. The index fell over 4%, with key players like Marvell Technology, Broadcom, Constellation Energy, and Nvidia each suffering losses of more than 11%. The stock market showed mixed results on Monday, with the S&P 500 down 1.7% despite 324 members rising. The selloff was largely driven by a decline in stocks tied to the artificial intelligence sector, with the tech-heavy index hit hard. Recent comparative research shows that countries can pay a high price for populist economic policies.

Nvidia, down 13%, accounted for 112 points of the Dow’s loss, while Caterpillar contributed 92 points, and Microsoft’s 2.8% decline took away 79 points. The Nasdaq Composite, which tracks the country’s largest tech firms, plunged more than 3%. The Dow ended up nearly 300 points after falling earlier in the day, and the S&P 500 tumbled almost 1.5%. Bill Clinton was the most successful president, achieving an increase of 151% during his two terms in the dowmarkets White House. Overall, the stock market rose by an average of 51% during Democrat incumbencies, more than twice the size of the Republican increases.

These are our top 10 things to watch in the stock market Friday

There were also more tariff headlines with the FT reporting that newly confirmed Treasury Secretary Bessent is pushing for universal tariffs starting at 2.5% and increasing by that amount monthly which could reach 20%. When asked President Trump said he supports an across-the-board tariff of “much bigger” than that level. This morning’s earnings reports for the most part were fine but were met with a mixed response. Futures bounced modestly overnight led by the stocks that were most beaten up yesterday however, those gains faded by the open. “These companies have deep pockets and talent,” Nancy Tengler, the chief investment officer of Laffer Tengler Investments, said in a note, pointing to reports that Meta had already set up war rooms to analyze DeepSeek. “We will soon find out if all the claims are true and it is my expectation that we will also learn how quickly US firms can adapt.”

News Tips

With Tesla set to release its latest quarterly earnings report, Wall Street thinks the stock can keep rising on a “golden age” for automation and AI.

Yields have been on the rise amid a solid U.S. economy and worries about possibly higher inflation coming from tariffs and other policies favored by President Donald Trump. All the worries sent investors toward bonds, which can be safer investments than any stock. The rush pushed the yield of the 10-year Treasury down to 4.52% from 4.62% late Friday. The damage was focused on AI-related stocks, while the rest of the market held up much better.

Today’s hot stocks

Shares of Nvidia, the chip company whose AI technology has made it into one of the world’s most valuable companies, dropped more than 13% by late morning on Monday. Rival chip companies, including Arm and Broadcom, also plunged, dragging down the major indexes. The tech-heavy Nasdaq fell almost 600 points, or nearly 3%, by late morning. Many investors are currently quite nervous about a possible recession after the long bull market of the last few years.