Apple drags Nasdaq lower despite rally in Nvidia, Coinbase 

The rally in a group of technology stocks linked to the artificial intelligence boom did not stop the U.S. equity market from retreating on Monday, driving the Nasdaq Composite and S&P 500 off all-time highs. The Nasdaq Composite lost 0.41%. 

The weakness of Magnificent Seven stocks except Nvidia weighed on major indexes. A loss of 0.25% saw the Dow Jones Industrial Average close at 38,989 index points. The market has been largely surging higher over the last few weeks due to excitement around AI, but Monday’s losses are coming. As the final major stock index to close at a record close this year, the technology-heavy Nasdaq achieved an all-time high on Friday, surpassing a record set in 2021. 

Gains of over 3% in Nvidia and 18% in Super Micro Computer losses following S&P Dow Jones Indices’ announcement that the company would join the S&P 500 later this month tamed the drawdowns in the U.S. equity market. As bitcoin got closer to its all-time high in 2021, a few stocks with a focus on the crypto market, like MicroStrategy and Coinbase, also reported significant gains. That provided more proof that Wall Street was taking chances during Monday’s trading session. 

However, in the end, other technological underachievers held back the market, with the S&P 500 communication services sector leading the index lower. Following the imposition of a nearly $2 billion antitrust fine by the European Union, Apple saw a 2.5% decline. After revealing fresh price cuts and incentives late last week, Tesla saw a decline of more than 7%. 

This week, traders will be watching for cues from Federal Reserve Chair Jerome Powell regarding the future path of interest rates. The head of the central bank is scheduled to update the Senate on Thursday and the House of Representatives on Wednesday regarding monetary policy. 

On Wednesday, data on January job openings and the ADP Employment Survey will be made public, offering more perspective into the labor market. The February manufacturing and nonfarm payroll data is due on Friday.