The Dow Jones Industrial index tumbled 240.59 points Monday to finish at 44,401.93.
The much-broader index dipped 37.42 points to 6,052.85
The NASDAQ Composite fell 123.08 points to 19,736.69
Nvidia shares dropped about 2.6% on the heels of a Chinese regulator announcing that it’s investigating the artificial intelligence chip darling for potentially violating the country’s antimonopoly law. The stock has been a bellwether for the artificial intelligence trade, up more than 180% in 2024.
Advanced Micro Devices, another chipmaker, closed 5.6% lower after Bank of America downgraded the stock to neutral from buy, with the bank citing its limited market share gain potential as a result of “higher competitive risks in AI against best-of-breed NVDA’s dominance.”
Tech giants Meta Platforms and Netflix also struggled.
The price of bitcoin retreated as well, a sign that investors are moving away from risk-taking. The cryptocurrency topped $100,000 for the first time ever on Wednesday evening last week.
Prices for the 10-year Treasury lagged, raising yields to 4.20% from Friday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices hiked 91 cents to $68.11 U.S. a barrel.
Prices for gold jumped $22.10 an ounce to $2,681.70 U.S.