Nasdaq Closes Down as AI Caution Weighs on Tech, Nvidia Results in Focus
The Nasdaq composite closed down more than 1% on Monday, with big technology stocks creating the biggest drag as investors worried about demand for technology supporting artificial intelligence while they waited for results from market heavyweight Nvidia.
The S&P 500 closed slightly lower while the Dow was close to unchanged.
Demand for Nvidia's (NVDA.O), pricey AI chips will be in focus when it reports results on Wednesday. Investors have been questioning hefty spending on the technology since low-cost AI models from China's DeepSeek rattled the industry in January.
Adding to uncertainty, a TD Cowen analyst note published late on Friday reported that Microsoft Corp (MSFT.O), has scrapped leases for sizeable data center capacity in the U.S., suggesting a potential oversupply of AI infrastructure.
Microsoft said its plan to invest over $80 billion in AI and cloud capacity this fiscal year was intact but that it "may strategically pace or adjust" infrastructure in some areas.
And, along with worries about tariffs and inflation, investors are getting more anxious about economic growth after last week's batch of weak economic data and a disappointing forecast from Walmart (WMT.N).
According to preliminary data, the S&P 500 (.SPX), lost 29.18 points, or 0.49%, to end at 5,983.95 points, while the Nasdaq Composite (.IXIC), lost 238.49 points, or 1.22%, to 19,285.51. The Dow Jones Industrial Average (.DJI), rose 33.93 points, or 0.08%, to 43,469.97.
Source : Reuters
