Jamie Spencer
US stocks were mixed on Monday as tech stocks faltered, with investors weighing the prospects for AI ahead of Nvidia’s (NVDA) earnings report later this week. The Dow Jones Industrial Average (^DJI) led the gains, rising 0.5% following its worst week since October. The S&P 500 (^GSPC) edged up 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) pared losses to drop 0.2%.
Market Sentiment and Trump’s Tariff Plans
Stocks attempted to rebound after Friday’s sharp declines, which capped off a losing week marked by growing concerns among American consumers and businesses about President Donald Trump’s tariff plans. The potential impact of these tariffs on the tech sector, particularly on AI investments, has weighed on investor sentiment.
Nvidia Earnings in Focus
All eyes are on Nvidia as it prepares to report its earnings on Wednesday, with investors keen to see how the AI chipmaker is navigating the looming threat of tariffs. Nvidia’s results are seen as a barometer for the broader AI industry, given its leadership in high-performance computing and AI chips.
Additionally, the market is closely monitoring Big Tech’s demand for AI, along with competitive risks from China-based DeepSeek’s lower-cost technology.
Tech Stock Performance and AI Investment Outlook
Nvidia shares pared earlier gains to trade near the flatline, while Microsoft (MSFT) lost ground after an analyst report suggested it is slowing down on data center construction. Conversely, Apple (AAPL) saw its stock rise after pledging to spend and invest $500 billion in the US, partly to avoid Trump’s proposed tariffs.
Key Economic Events This Week
Investors are also awaiting key economic data releases this week, including the January report for the Personal Consumption Expenditure (PCE) index on Friday, which is the Federal Reserve’s preferred measure of inflation. Reports on US GDP, the housing market, and consumer confidence are also due in the coming days, adding to the market’s volatility.
