The Nasdaq and S&P 500 fell Monday morning as a continued selloff in tech stocks extended losses sparked by stronger-than-expected job reports.
Shortly after the market opened, the Dow Jones Industrial Average added 0.08%, while the Nasdaq and S&P 500 dropped 1.6% and 0.8%, respectively. Meanwhile, the 10-year Treasury yield climbed to a fresh high of 4.77% in the morning. Oil prices also surged 1.6%, with West Texas Intermediate reaching $77.7 per barrel, marking their highest levels since early October.
This week holds significant events, including earnings reports from JPMorgan Chase (JPM+1.28%) and Goldman Sachs (GS+0.77%) on Wednesday, followed by Taiwan Semiconductor (TSM-3.30%) and UnitedHealth (UNH+3.50%) on Thursday.
On the macroeconomic front, investors will keep an eye on the key inflation indicators, the consumer price index (CPI) and producer price index (PPI), this week.
Shares of Nvidia (NVDA-3.43%) fell 3.7% on Monday as the Biden administration unveiled rules to regulate chip sales to foreign countries.
The White House published a swath of new guidelines early Monday to curb the sale of AI chips from U.S. firms such as Nvidia to specific countries and companies. The administration said the rules would “strengthen U.S. security and economic strength.”
Several AI-related stocks were also down in premarket trading, including Super Micro Computer (SMCI-9.72%), Micron (MU-5.52%), and Palantir (PLTR-3.19%), with declines of 10%, 5.7%, and 4.3%, respectively.
Shares of biotechnology company Moderna (MRNA-22.73%) plunged more than 23% after the company slashed its sales guidance for the year. Moderna now projects 2025 revenue between $1.5 billion and $2.5 billion, a significant downgrade from its earlier forecast of $2.5 billion to $3.5 billion posted in September.
Shares of Lululemon (LULU+0.65%) surged 2.5% after the company raised its fourth-quarter earnings and revenue outlook, citing stronger-than-expected performance during the holiday season. The retailer now anticipates sales between $3.56 billion and $3.58 billion, up from its previous forecast of $3.48 billion to $3.51 billion. The update is a positive development for investors, as the athletic apparel company has faced sluggish sales over the past year.
— Rocio Fabbro contributed to the article
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