Tech Stock Selloff Continues, Market Declines Amid Regulatory Changes and Earnings Reports

The Nasdaq and S&P 500 experienced a downturn on Monday morning as the selloff in tech stocks continued, driven by stronger-than-expected job reports.
Shortly after the market opened, the Dow Jones Industrial Average saw a modest increase of 0.08%, while the Nasdaq and S&P 500 dropped 1.6% and 0.8%, respectively. The 10-year Treasury yield surged to a new high of 4.77%, reflecting market volatility. Oil prices also climbed 1.6%, with West Texas Intermediate hitting $77.7 per barrel, the highest level since early October.
This week is packed with major events, including earnings reports from JPMorgan Chase (JPM) and Goldman Sachs (GS) on Wednesday, followed by Taiwan Semiconductor (TSM) and UnitedHealth (UNH) on Thursday. Investors are also focused on key inflation indicators, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), due for release this week.
Nvidia Shares Drop Amid New AI Chip Regulations
Nvidia (NVDA) saw a 3.7% decline in its stock price on Monday following the Biden administration’s introduction of new regulations aimed at curbing the sale of AI chips to specific foreign countries and companies. The White House’s new guidelines are intended to strengthen U.S. security and economic stability. The move impacted other AI-related stocks as well, with Super Micro Computer (SMCI), Micron (MU), and Palantir (PLTR) experiencing declines of 10%, 5.7%, and 4.3%, respectively.
Moderna’s Shares Plunge 23% After Lowered Sales Forecast
Shares of biotech company Moderna (MRNA) plummeted over 23% after the company revised its sales guidance for the year. Moderna now expects its 2025 revenue to fall between $1.5 billion and $2.5 billion, a significant cut from the previous forecast of $2.5 billion to $3.5 billion. This downward adjustment has raised concerns among investors about the company’s future prospects.
Lululemon Shares Rise on Strong Holiday Season Performance
In contrast, Lululemon (LULU) saw a 2.5% increase in its stock price after raising its fourth-quarter earnings and revenue outlook. The retailer cited better-than-expected performance during the holiday season, now expecting sales between $3.56 billion and $3.58 billion, up from its previous forecast of $3.48 billion to $3.51 billion. This positive development comes as a relief for investors after a year of sluggish sales for the athletic apparel company.