US open: Stocks lower amid AI rout

(Sharecast News) - Wall Street stocks were lower at the open on Monday amid concerns that the artificial intelligence bubble may be about to pop. As of 1545 GMT, the Dow Jones Industrial Average was down 0.10% at 44,381.31, while the S&P 500 lost 1.50% to 6,009.43 and the Nasdaq Composite came out the gate 2.53% weaker at 19,449.59.

The Dow opened 42.94 points lower on Monday, extending losses recorded in the previous session as investors reacted to data showing that private sector growth slowed to a nine-month low.

Major indices were lower early on Monday after Chinese startup DeepSeek's open-source AI model reportedly outperformed OpenAI's in several for what it said cost less than $6.0m. As a result of the news, AI darling Nvidia was down 12.82% and on track for its worst day since 2020, while Broadcom shed 13.11% and AMD was down 4.35%.

Elsewhere in the corporate space, Meta, Microsoft, Tesla and Apple will all report quarterly earnings before the end of the week.

On the macro front, the Chicago Federal Reserve's national activity index increased to 0.15 in December, the highest reading in seven months, up from November's upwardly revised reading of -0.01.

Elsewhere, US new home sales rose by 3.6% month-on-month to a seasonally adjusted rate of 698,000 in December, according to the Census Bureau, the biggest increase since September and firmly above market expectations for a reading of 670,000.

Later in the week, the Federal Open Markets Committee will hold its first two-day policy meeting of 2025 on Tuesday, with the central bank set to make its interest rate decision on Wednesday. Economists expect the Fed to leave interest rates unchanged.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Travelers Company Inc. (TRV) $248.70 2.83% Johnson & Johnson (JNJ) $150.46 2.48% Verizon Communications Inc. (VZ) $40.51 2.45% Salesforce.Com Inc. (CRM) $342.05 2.45% Unitedhealth Group Inc. (UNH) $545.07 2.36% Nike Inc. (NKE) $75.14 2.13% Procter & Gamble Co. (PG) $167.16 1.85% Merck & Co. Inc. (MRK) $97.21 1.74% Apple Inc. (AAPL) $226.21 1.54% Coca-Cola Co. (KO) $62.72 1.29%

Dow Jones - Fallers

Walgreens Boots Alliance, Inc. (WBA) $10.98 -7.46% Caterpillar Inc. (CAT) $391.69 -3.91% Cisco Systems Inc. (CSCO) $59.92 -3.72% Microsoft Corp. (MSFT) $430.69 -3.01% American Express Co. (AXP) $316.96 -1.36% International Business Machines Corporation (CDI) (IBM) $221.86 -1.31% Goldman Sachs Group Inc. (GS) $631.05 -0.92% JP Morgan Chase & Co. (JPM) $264.41 -0.16% Dowdupont Inc. (DWDP) $0.00 0.00% Intel Corp. (INTC) $20.86 0.17%

S&P 500 - Risers

AT&T Inc. (T) $24.06 5.88% HF Sinclair Corporation (DINO) $37.60 4.97% Sba Communications Corp. (SBAC) $205.32 4.31% Leggett & Platt Inc. (LEG) $11.13 4.12% Kraft Heinz Co. (KHC) $30.36 3.60% Dollar Tree Inc (DLTR) $74.93 3.38% Amer Water Works (AWK) $125.68 3.33% CVS Health Corp (CVS) $56.35 3.30% Weyerhaeuser Co. (WY) $30.97 3.27% Mid Amer Apt Commun (MAA) $153.11 3.17%

S&P 500 - Fallers

Arista Networks Inc. (ANET) $108.48 -16.02% Quanta Services Inc. (PWR) $307.65 -14.07% NRG Energy Inc. (NRG) $97.01 -13.67% Nvidia Corp. (NVDA) $123.35 -13.51% Eaton Corporation plc (ETN) $319.92 -13.30% Broadcom Inc. (AVGO) $212.44 -13.18% CenturyLink Inc. (LUMN) $5.20 -12.25% Digital Realty Trust (DLR) $160.22 -11.24% Fluor Corp. (FLR) $49.20 -9.84% Micron Technology Inc. (MU) $93.20 -9.68%

Nasdaq 100 - Risers

Kraft Heinz Co. (KHC) $30.36 3.60% Dollar Tree Inc (DLTR) $74.93 3.38% Microchip Technology Inc. (MCHP) $57.96 2.78% Baidu Inc. (BIDU) $88.79 2.77% Monster Beverage Corp (MNST) $49.56 2.65% Gilead Sciences Inc. (GILD) $95.46 2.57% Regeneron Pharmaceuticals Inc. (REGN) $691.79 2.37% O'Reilly Automotive Inc. (ORLY) $1,282.36 2.26% Workday, Inc. (WDAY) $263.96 2.20% Hologic Inc. (HOLX) $72.57 2.18%

Nasdaq 100 - Fallers

Nvidia Corp. (NVDA) $123.35 -13.51% Broadcom Inc. (AVGO) $212.44 -13.18% Micron Technology Inc. (MU) $93.20 -9.68% Walgreens Boots Alliance, Inc. (WBA) $10.98 -7.46% Asml Holdings N.V. (ASML) $682.20 -6.84% Applied Materials Inc. (AMAT) $174.78 -6.41% Cadence Design Systems Inc. (CDNS) $302.37 -5.65% KLA-Tencor Corp. (KLAC) $710.88 -5.19% Synopsys Inc. (SNPS) $517.99 -5.16% Lam Research Corp. (LRCX) $75.61 -5.11%