The Nasdaq Composite dipped 0.84% on Monday, dragged down by broad weakness in technology stocks. Major players like Apple, Meta, and Oracle each saw declines exceeding 1%, reflecting investor unease regarding the sector’s near-term prospects.
Nvidia, a critical component of the artificial intelligence infrastructure, underperformed its peers, shedding nearly 2% of its value. Despite CEO Jensen Huang’s bullish outlook in October, citing a “half a trillion dollars” backlog for 2025 and 2026, investors appear cautious as they await further substantiation of sustained growth. All eyes will be on Nvidia’s third-quarter earnings report on Wednesday, where Huang’s commentary on 2026 demand will be closely scrutinized. The company’s performance is being closely watched as a bellwether for the broader AI market.
The market’s reaction to Nvidia’s report underscores a broader dynamic: While Nvidia and OpenAI have emerged as the twin pillars of the AI revolution, even minor setbacks or perceived slowdowns can trigger disproportionately negative reactions given the lofty expectations surrounding the industry.
“If they offer any even slightly muted guidance or forecast for demand for their chips, the market would take that poorly,” noted Baird investment strategist Ross Mayfield. This highlights the precarious balance between innovation hype and tangible financial performance that high-growth tech companies must navigate.
Despite the recent period of selling pressure fueled by valuation concerns and escalating capital expenditure requirements, some analysts believe the tech sector may still be poised for a year-end rally.
“We continue to see a balance of bullish and bearish signals heading into year-end, but our stance remains that a year-end rally is likely,” Canaccord Genuity analyst Michael Graham stated in a Monday research note. This perspective suggests that the fundamental drivers of tech growth, such as robust demand for cloud computing and software-as-a-service, might outweigh short-term market volatility.
Similarly, HSBC’s chief multi-asset strategist Max Kettner expressed confidence in the equities market, stating that the bank believes “the probability of a melt-up into year-end – particularly in equities – is much greater” than a potential AI bubble bursting. Kettner’s analysis suggests a continuation of the current risk-on sentiment, bolstered by improving economic data and accommodative monetary policies.
Should these optimistic projections materialize, investors can anticipate a potentially lucrative closing to the year. However, the longer-term trajectory of AI-linked stocks and the broader tech landscape will remain a key subject of analysis as we move into the new year.
Gold bars at the precious metal dealer Pro Aurum.
Sven Hoppe | Picture Alliance | Getty Images
The rich are ‘renting’ out their idle gold bars for income as prices remain at historic highs
With gold prices soaring to record levels this year, a rising number of affluent investors and family offices are capitalizing on the precious metal’s value by leasing their gold bars. This strategy involves lending bullion to refiners, jewelers, and fabricators in exchange for interest payments, effectively transforming gold, traditionally viewed as a non-yielding asset, into an income-generating resource.
Industry analysts point to the compelling nature of this approach: long-term gold holders can secure yields on their holdings through lease agreements, while jewelers and fabricators utilize these leases to fund their ongoing gold requirements for production.
— Lee Ying Shan
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