Nasdaq Falls More Than 1%

The Nasdaq Composite dropped on Monday, with technology stocks stuck in a slump as the artificial-intelligence growth story remains murky.

The tech-heavy index finished the day 1.2% lower, dragged down by companies such as Palantir, Constellation Energy and PDD. It was the index’s second consecutive daily decline of more than 1%. The S&P 500 dropped 0.5%, while the Dow Jones Industrial Average added 0.1%, boosted by a 4.9% jump in Nike stock and modest climbs in the shares of Boeing and Travelers Cos.

The S&P 500 finished the last hour trading lower after President Trump said in a press conference that tariffs on Canada and Mexico were set to move forward on schedule next week. The index has lost all of its post-inauguration gains and has lost 0.22% since Trump took office.

Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report, noted that it has been a tough month for companies tied to AI after Chinese company DeepSeek rattled investors and questioned the outlook for American tech companies. Nvidia’s earnings report on Wednesday could be a critical moment, he added.

“If Nvidia comes out on Wednesday with an amazing earnings report,” Tentarelli said, “then that could turn these AI stocks up. But right now, the market has been rotating out of AI and tech.” Nvidia shares fell 3.1% Monday.

Still, analysts see AI-related growth as a strong tailwind for the S&P 500 this year. Investors eyed another mammoth pledge to invest in U.S. technology under the Trump administration. Apple vowed to spend more than $500 billion, in line with the huge AI project dubbed Stargate that SoftBank, Oracle and OpenAI are leading.

And despite Friday’s stock market selloff, UBS chief investment officer for Americas Solita Marcelli noted Monday that the S&P 500 remains near all-time highs.

“While volatility may persist, we expect more to go in stocks and view equity pullbacks as a buying opportunity,” Marcelli said.

Overseas, German stocks finished 0.6% higher after a clear election result. Conservative victor Friedrich Merz must form a potentially fractious governing coalition.

U.S. Treasury prices were little changed. The 10-year yield fell to 4.390%, having settled at 4.419% Friday.

Asian stocks mostly declined. Shares of Alibaba sold off in Hong Kong and the U.S. after it laid out ambitious AI investment plans. Japanese markets were closed.

Bitcoin prices fell below $94,000. Crypto-linked stocks including Coinbase and Robinhood fell.

Gold ticked up slightly. The price of the precious metal rose 0.4% to $2,947.90 a troy ounce. Gold is approaching a landmark of $3,000 as it continues to break record after record.

Nike was a top performer on the S&P 500 after Jefferies analysts gave it an upgrade, noting that its chief executive was positioning the company for growth.

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