Technology stocks struggled across the board in intraday trading Monday, including declines among Magnificent 7 firms and a big hit to quantum computing stocks.
The S&P 500 technology sector was down about 1.3% intraday, and the tech-heavy Nasdaq Composite was more than 1% lower. The decline follows broad market struggles on Friday after labor market data for December came in hotter than expected, leading investors to scale back their expectations for Federal Reserve rate cuts.
The Magnificent 7 have not been spared, with Nvidia (NVDA) stock falling nearly 3% and Apple (AAPL) and Meta Platforms (META) shares declining almost 2% in early afternoon trading. The only member of the group in the green was Tesla (TSLA), with shares up 0.2%.
Nvidia's drop came even as the chipmaker announced partnerships with Mayo Clinic, IQVIA Holdings (IQV), and Illumina (ILMN) on Monday. The partnerships are designed to utilize Nvidia technology to develop artificial intelligence (AI) agents that can accelerate clinical trials and even physical AI robots for surgery.
Shares of quantum computing companies continued to slide Monday after Meta CEO Mark Zuckerberg followed the lead of Nvidia CEO Jensen Huang with comments throwing cold water on the sector.
In a Friday appearance on "The Joe Rogan Experience," Zuckerberg said he believes quantum computing is "still quite a ways off from being a very useful paradigm." That followed comments from Huang last week that "very useful quantum computers" are still 15 to 30 years away.
Rigetti Computing (RGTI) shares plunged 29%, while D-Wave Quantum (QBTS) lost 32%, IonQ (IONQ) fell 13%, and Quantum Computing (QUBT) dropped 25% in recent trading.
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