People take photos at the Wall Street Bullring in the New York Financial District, New York City, June 24, 2024.
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of Nasdaq Composite U.S. stocks fell 0.84% on Monday, with technology stocks under pressure. apple, meta and oracle Each has fallen by more than 1%.
The essence of artificial intelligence Nvidia Performance was even worse, with a loss of almost 2%. CEO Jensen Huang said in October that the company’s business will reach “$5 trillion” between 2025 and 2026. When Nvidia reports its third-quarter results in the U.S. on Wednesday, investors will be scrutinizing Hwang’s comments for signs of strong growth in 2026 that the data points suggest.
The problem with promises and expectations is that disappointment is disproportionately painful, especially for companies that are one of two in the world of artificial intelligence (the other being OpenAI).
“If they give even slightly conservative guidance or forecasts about the demand for their chips, the market will take it badly,” said Ross Mayfield, investment strategist at Baird.
Despite a recent sell-off in tech stocks due to concerns about high valuations and capital spending, some analysts believe they could still end the year higher.
“We continue to see a balance of bullish and bearish signals heading into year-end, but our stance remains that a year-end rally is likely,” Canaccord Genuity analyst Michael Graham said in a note Monday.
Similarly, H.S.B.C. Chief multi-asset strategist Max Kettner said on Monday that the bank believes “the probability of a crash towards the end of the year, especially in equities, is much greater” than the probability of the AI bubble bursting.
If their predictions come true, investors will have a lot to celebrate during the Christmas season. And we can worry about AI in the new year.
What you need to know today
Major U.S. indexes fell stateside on Monday. Investors sold off the technology name, furthering its downward trajectory. alphabet However, the stock bucked the trend following the following news: Berkshire Hathaway is investing in it. pan-european Stocks 600 We lost 0.54%.
Nvidia’s “$5 trillion” business. CEO Jensen Huang said in October that the company’s order book for 2025 and 2026 will be a combined $500 billion. Analysts believe that Huang has a strong forecast for sales in 2026.
Outlook for a December rate cut is mixed. In prepared remarks Monday, Federal Reserve President Christopher Waller said he was focused on the labor market, which has been “sluggish for months.” But Deputy Speaker Philip Jefferson said: “We need to proceed slowly.”
India announces energy deal with US Almost 10% of New Delhi’s liquefied petroleum gas will be imported from the US, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Monday. This is a move to strengthen ties with the White House.
(PRO) Bitcoin’s downward trend could be a sign of trouble. One analyst told CNBC that crypto prices, which are under pressure, are a “leading indicator” for U.S. stocks. However, some believe that Bitcoin still has tailwinds in the short term.
And finally…
The Swiss flag is hoisted on a ferry on Lake Geneva on Tuesday, August 5, 2025 in Geneva, Switzerland. The Swiss president rushed to the U.S. capital on Tuesday in a last-minute attempt to stop the U.S. president from imposing the highest tariffs on Switzerland among the developed world. Photographer: Andrew Kravchenko/Bloomberg via Getty Images
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