Technology sells but AI isn’t going anywhere right now

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open provides investors with information on everything they need to know, no matter where they are. Do you like what you see? You can subscribe here.

Technology has driven the Nasdaq down
They were US markets mixed monday. The S&P 500 and Dow Jones Industrial Average pink, but Nasdaq Composite It fell amid a massive sell-off in technology. Pan-European Stoxx 600 index It has decreased by 0.55%, and most sectors in negative territory. UK borrowing costs were higher on Monday, sparking concern cuts in public spending or further tax increases.

Potential new US Steel offer
Cleveland Cliffs is cooperating with the rival nucor in one potential offer for United States steelwhich was taken by Japan Nippon Steel It was blocked by the White House earlier this month, sources told CNBC’s David Faber. The offer would be a high fee of $30. Nippon planned to buy US Steel for $55 per share in a deal valued at more than $14 billion.

Slowing inflation in India
India’s annual consumer inflation came in at December 5.22%, According to the Ministry of Statistics and Program Implementation. The reading was lower than the 5.30% forecast in a Reuters poll of analysts, marking a second straight month of declining price growth. Softer inflation reading gives room for RBI to cut rates, amid slowing growth in the country.

Second blow to quantum stocks
Shares of quantum computing sold off on Monday after Meta Platforms CEO Mark Zuckerberg said on Joe Rogan’s Friday podcast that the technology is “far from being a very useful paradigm.” Comments reinforce recent comments Nvidia CEO Jensen Huang suggested that PCs are likely 15 to 30 years.

(PRO) Rieder would buy 100% Nasdaq
The Nasdaq Composite edged other major indexes lower on Monday as investors steered away from technology names. of BlackRock Rick Rieder, the firm’s chief investment officer of global fixed income, told CNBC that he would “100 percent” buy the Nasdaq dip. Rieder explains his decision and how he would establish diarrhea protection.

The tech-heavy Nasdaq Composite lost 0.38%. Big tech names popular with investors dropped a lot in Monday’s session. palantir – has top performing stocks last year in the S&P — down 3.4%, and Nvidia lost 2%, based on last week’s losses. Nvidia fell nearly 6% during the period, while Palantir lost more than 15%.

“We think it’s a necessary part of a correction phase and we’re probably further along than many investors recognize in many stocks in late November, early December,” AXS Investments CEO Greg Bassuk said, adding to Friday’s earnings report. cement” those concerns.

However, the S&P 500 rose 0.16% and the Dow Jones Industrial Index rose 0.86% as investors turned to non-technology stocks such as Amgen, the caterpillar and United Health.

This does not mean that these sectors will soon take over as market leaders, or at all. Sectoral rotation is a common phenomenon in the markets as investors secure their returns and look for the next stocks with upside potential. And the background to the rate hike It puts more pressure on growth-oriented tech stocks than value stocks, which typically make up the Dow.

Also, the artificial intelligence craze isn’t over, according to the latest profits the reports from TSMC and Foxconn, which trades as Hon Hai precision industry. Both companies saw a surge in revenue due to strong demand for AI-related products.

A long-term turnaround outside of technology and AI is unlikely. But an inside field cannot be excluded.

– CNBC’s Samantha Subin, Hakyung Kim and Brian Evans contributed to this report.