Technology is selling out, but AI isn’t going anywhere just yet

This is a report 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. Like what you see? You can subscribe here.

Tech drags down the Nasdaq
US markets were Mixed Monday. The S&P 500 and Dow Jones industrial index rose, but Nasdaq Composite fell amid a broad technology selloff. General Europe The Stoxx 600 Index decreased by 0.55%, from most sectors are in negative territory. The cost of borrowing in the UK rose on Monday, raising concerns cuts in government spending or further tax increases.

US Steel’s potential new bet
Cleveland Rocks cooperates with the opponent Nukor in a potential rate for US Steelthe absorption of which by Japan Nippon Steel was blocked by the White House earlier this month, sources told CNBC’s David Faber. The offer will be a high stake of US$30. Nippon had planned to buy US Steel for $55 a share in a deal valued at more than $14 billion.

Slowing inflation in India
Annual consumer inflation in India in December was 5.22%, reports the Ministry of Statistics and Program Implementation. The reading came in below the forecast of 5.30% in a Reuters poll of analysts, marking the second consecutive month of declining price growth. Softer inflation readings enable RBI to cut rates, against the background of slowing growth in the country.

Second strike on quantum stocks
Quantum computing shares will sell off on Monday after Meta Platforms CEO Mark Zuckerberg said on Joe Rogan’s podcast Friday that the technology is “not a very useful paradigm.” The comments reinforce a recent comment from Nvidia CEO Jensen Huang suggested that computers are likely From 15 to 30 years.

(PRO) Reader would 100% buy the Nasdaq
The Nasdaq Composite underperformed other major indexes on Monday as investors shunned technology names. BlackRock’s Rick Reeder, who is the global fixed income firm’s chief investment officer, told CNBC that he would “100 percent” buy a drop in the Nasdaq. Reader explains his decision and how he will deploy the defense against the reverse side.

The technology Nasdaq Composite lost 0.38%. Big tech names popular with investors fell overall in the session on Monday. Palantir – that the most effective actions on the S&P last year — is down 3.4%, while Nvidia lost 2%, building on its losses over the past week. Nvidia fell nearly 6% over the period, while Palantir lost more than 15%.

“In our view, this is a necessary part of the correction phase, and we’re probably further along in that correction than many investors believe because many stocks peaked in late November, early December,” said AXS Investments CEO Greg Basuk, adding , that Friday’s jobs report “reinforced those concerns.

However, the S&P 500 added 0.16% and the Dow Jones Industrial Average rose 0.86% as investors switched to non-tech stocks such as Amgen, Caterpillar and UnitedHealth.

That doesn’t mean these sectors will take over as market leaders anytime soon — or at all. Sector rotation is a common occurrence in the markets as investors secure their profits and look for the next stock with growth potential. I amid rising rates putting more pressure on growth-oriented tech stocks than the value stocks that typically make up the Dow.

Also, the AI ​​craze isn’t over, judging by the latest salary reports from TSMC and Foxconn, which trades as Hon Hai Precision Industry. Both companies saw revenue growth thanks to strong demand for AI-related products.

A long-term rotation from technology and artificial intelligence is unlikely. But one in the field cannot be rejected.

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