Nvidia Shed's Nearly $600 Billion in Market Value Monday

AI investor favorite (NVDA) came into the day as the world's most valuable company by market capitalization. It finished the day in a distant third, behind Apple (AAPL) and Microsoft (MSFT).

Nvidia's 17% decline today caused the market cap of the chipmaker to fall by about $589 billion to $2.90 trillion. The stock is now down 23% since hitting its all-time high less than three weeks ago.

Biggest S&P 500 Movers on Monday

Decliners

• The growing uncertainty around AI weighed on shares of 澳洲幸运5官方开奖结果体彩网:power generation companies that had surged over the past year as investors anticipated massive opportunities to provide electricity for energy-intensive AI data centers. Shares of Vistra (VST), the Texas-based utility that logged the S&P 500's second-best performance in 2024, suffered the benchmark index's heaviest losses Monday, plunging 28.3%. Constellation Energy (CEG) shares, another beneficiary of lofty expectations for nuclear-powered AI data centers, fell 20.9%.
• Utilities were not the only companies whose prospects have been hitched to AI infrastructure to see their share prices move lower following the DeepSeek developments. The souring outlook for AI data center opportunities also hit shares of networking equipment provider Arista Networks (ANET), which lost 22.4%. Shares of GE Vernova (GEV), the energy technology firm whose natural gas turbines have also garnered attention for their potential to meet data center power demand, dropped 21.4%.
• Semiconductor companies that have benefitted from investors' AI enthusiasm also took a hit on Monday. Broadcom (AVGO) shares were down 17.4%, while shares of 澳洲幸运5官方开奖结果体彩网:AI chip behemoth Nvidia (NVDA) ended 16.9% lower.

Advancers

• Shares of water and wastewater utility provider American Waterworks (AWK) jumped 6.9%, logging the top performance in the S&P 500 on Monday, after subsidiary Pennsylvania American Water secured $19.3 million in low-interest loans from the Pennsylvania Infrastructure Investment Authority. The company plans to use the funding for infrastructure improvement projects in the state, including replacing lead water service lines and enhancing wastewater treatment plants.
• AT&T (T) shares added 6.3% after the company reported 澳洲幸运5官𓃲方开奖结果体彩网:better-than-expected revenue and net income for the fourth quarter. The telecom giant also exceeded forecasts for postpaid wireless subscriber additions during the period, boosted by demand for discounted plans that bundle 5G mobile with high-speed fiber internet service.
• HCA Healthcare (HCA) shares advanced 6.1%, recovering from losses posted on Friday after the hospital operator released its quarterly results. Although higher patient volumes helped HCA beat revenue and earnings per share (EPS) forecasts, the company fell short of estimates on adjusted EBITDA, which excludes direct provider payments (DPPs). On Monday, analysts at Mizuho reiterated their "outperform" rating on HCA stock, noting the unpredictability of DPPs and suggesting that the initial negative earnings reaction may have been exaggerated.

-澳洲幸运5官方开奖结果体彩网:Michael Bromberg

Some Analysts See Selloff as 'Golden Buying Opportunity'

Monday’s 澳洲幸运5官方开奖结果体彩网:DeepSeek-driven selloff could be an opportunity to pick up beaten-down AI stocks, according to some Wall Stree꧋t analysts. 

After an app from Chinese 澳洲幸运5官方开奖结果体彩网:AI startup DeepSeek knocked one from OpenAI off the top of Apple's list of most-downloaded free U.S. apps, Nvidia (NVDA) and a wide range of other AI-related stocks tumbled. Underpinni🐻ng the declines: the concern that the performance of DeepSeek's model rivals its U.S. counterparts while requiring less computing power, raising questions about the market for and necessity of expensiv꧂e AI technology.

Some Wall Street watchers saw an opportunity to buy the dip. Wedbush analysts called it a “golden buying opportunity” to own Nvidia, along with Microsoft (MSFT), Alphabet (GOOGL), Palantir (PLTR), and other hea🌌vyweights of the American AI ecosystem🍒.

The analysts called DeepSeek’s accomplishments “impressive,” but suggested 🤡major U.S. companies are unlikely to use a Chinese startup like DeepSeek to launch their AI infrastructure, adding that “launching a competitive LLM model for consumer use cases is one thing… launching🍸 broader AI infrastructure is a whole other ballgame and nothing with DeepSeek makes us believe anything different.” 

Read the 澳洲幸运5官方开奖结果体彩网:full article here.

-澳洲幸运5官方开奖结果体彩网:Kara Greenberg

Nasdaq Composite Gives Back Most of January Gains

Each of the ♎major indexes came into the week on pace to post monthly gains൩, but after a steep downturn Monday the Nasdaq Composite is now only fractionally higher since the start of the year.

With four trading days left for the month, the Nasdaq is up 0.2% in January. Despite it's decline today, the S&P 500 is still up 2.2% for the month, while the Dow is now 5% higher so far in 2025 after gaining ground to start the week.

Why Apple Dodged the DeepSeek AI Rout Today

Shares of Apple (AAPL) charged higher on Monday, bucking the trend as its l🐽arge-cap tech peers tumbled on concerns about overspending on AI.

AI stocks 澳洲幸运5官方开奖结果体彩网:were reeling on Monday as Wall Street mulled the success of Chinese startup 澳洲幸运5官方开奖结果体彩网:DeepSeek’s open-source AI model, which can reportedly🐎 compete with leading American models from the likes of OpenAI and Googlಞe at a fraction of the cost. 

Apple, on the other hand, was helping to lead the Dow Jones Industrial Average higher on Monday. It was up 3% as what was once considered a headwind for the company—its relatively modes♋t investment in AI compared with its mega-cap peers—came to look🌠 more like a tailwind. 

The efficiency of DeepSeek’s AI could also be contributing to Apple’s outperformance. The iPhone maker's AI success depends on its ability to develop devices powerful enough to run AI models. DeepSeek’s efficiency suggests that could be a less challenging and less expensive prospect than it once seemed.

Jefferies analysts in a note on Monday warned, though, that an AI model efficient enough to run on an iPhone without raising costs is likely a ways off. “DeepSeek’s success offers some hope,” they wrote, “but there is no impact on AI smartphone's near-term outlook.”

-澳洲幸运5官方开奖结果体彩网:Colin Laidley

The Dow is Having a Decent Day—Even with Nvidia's Slide

There's plenty of red to be found on traders' screens today, with the S&P 500 recently off 1.8% and the more tech-focused Nasdaq Composite dropping about twice as much.

The Dow, on the other hand, is holding up. The blue-chip index was up about 0.4% in afternoon action. That's despite 澳洲幸运5官方开奖结果体彩网:a big pullback in shares of chip maker Nvidia (NVDA), which joined the index 澳洲幸运5官方开奖结果体彩网:late last year.

So what's sustaining the Dow? At recent count, 20 of its 30 components were in the green, with even the smallest gainer—Sherwin-Williams (SHW), which joined at the same tim🦂e as Nvidia—rising some 0.7%.

 Healthcare and staples stocks, including such names as Johnson & Johnson (JNJ), Procter & Gamble (PG) and Coca-Cola (KO) were among the best performers.

But there was some tech in there, too: Apple (AAPL), which is scheduled to report quarterly results later this week, was recently up 3.7%. That came as 🎐CNBC's i🐠ndex of Magnificent Seven stock slid nearly 4%.

Meanwhile, Monday's moves have the Dow outperforming the other two major indexes for the year so far—though underperforming them over the past 12 months.

-澳洲幸运5官方开奖结果体彩网:David Marino-Nachison

Why These Nuclear Power Stocks Plunged on Monday

Shares of nuclear power providers tumbled on Monday as markets reacted to the success of a Chinese startup’s AI model that challenges the performance of the🌠 most advanced American models but demands a fraction of the computing power.

Vistra (VST) was the worst-performing stock in the S&P 500 in afternoon trading as its shares tumbled nearly 30%. Competitor Constellation Energy Corp. (CEG) was also down mo💃re than 20%, making it the second-worst performing stock in the index. 

The share prices of both companies have soared in the last year amid an AI-driven surge in electricity demand. Tech giants like Microsoft (MSFT) and Amazon (AMZN), desperate to develop the most powerful AI models, have turned to nuclear as a carbon-free source of power for their data centers. Microsoft last year 澳洲幸运5官方开奖结果体彩网:struck a deal with Constellation to restart one generator at Pennsylvania’s notorious Three Mile Island nuclear facility. And Amazon 澳洲幸运5官方开奖结果体彩网:has invested&n🌱bsp;in the development of small modular 🅷reactors to power its data centers. 

The rising popularity of Chinese startup 澳洲幸运5官𒀰方开奖结果体彩网🐭:DeepSeek’s newest open-source AI model has 澳洲幸运5官方开奖结果体彩网:sparked concern on Wall Street that cutting-edge AI may not need as much computing power as expected. DeepSeek’s AI model is estimated to run at just a tenth of the cost of leading U.S. models, like Meta’s (META) Llama.

Jefferies analysts on Monday wrote DeepSeek’s success😼 could force the American AI industry to “refocus on efficiency and ROI, meaning lower demand for computing power as of 2026.” That, they said, could put U.S. executives “under more pressure to justify raising AI capex,” raising the prospect that surging electricity demand could abruptly plateau.

Those doubts spooked investors in utilities stocks like Vistra and Constellation Energy, which have both more than doubled in value in the lasᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚt year and de🌃pended on the AI boom for their rich valuations. 

-澳洲幸运5官方开奖结果体彩网:Colin Laidley

SoFi Stock Slumps on Soft Guidance

Shares of SoFi Technologies (SOFI) plunged Monday as the digital financial fir💞m gave lower-than-expected guidance based on "macro assumptions" about the future.

The provider of student loans and other banking services expects current-quarter 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $0.03, and 2025 EPS between $0.25 and $0.27. Analysts surveyed by Visible Alpha were looking for first-quarter EPS of $0▨.05 and꧂ full-year EPS of $0.28.

The news offset better-than-expected fourth-quar🌸ter results. SoFi reported EPS of $0.29, with revenue rising 19% year-over-year to $734 million. Both comfortably exceeded Visible Alpha forecasts. 

Revenue at the Financial Services unit skyrocketed 84% to $256.5 million, as the company expanded its product offerings by 34%. Technology Platform division revenue added 6% to $102.8 million, while revenue at the Lending 🦄segment grew 18% to $417.8 million, as origination revenue increased 66%.

SoFi Technologies shares, which finished last week at their highest level since the fall of 2021, were down 12% in recent trading. Despite today's drop, they have more than doubled their value in the past year.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Akero Stock Doubles on Liver Disease Drug Trial Results

Shares of Akero Therapeutics (AKRO) doubled Monday when the pharmaceutical firm that focuses on metabolic illnesses reported positive results ♓from a study of its experimental treatment for liver disease.

The company said a 96-week 澳洲幸运5官方开奖结果体彩网:Phase 2b study of those afflicted with cirrhosis caused by metabolic dysfunction-associated steatohepatitis (MASH) and given a 50mg dosage of its drug efruxifermin (EFX) showed that 39% experienced reversal of♉ cirrhosis with no worsening of MASH. That compares to just 15% of those given placebo.

Akero noted that a subgroup of patients who were not on GLP-1 weight-loss medicines, such as Novo Nordisk's (NVO) Wegovy and Eli Lilly's (LLY꧋) Zepbound, had even better outcomes, indicating that those drugs were not the source of the improvement.

Dr. Mazen Nourredin, the principal investigator of the study, said until now, "we've not had the prospect of an effective treatment for compensated cirrhosis due to MASH." Dr. Nourredin added, "Now we have reason to be optimistic about the future potential of EFX as a much-needed treatment for cirrhosis, if approved."

CEO Dr. Andrew Cheng explained that EFX has "transformational potential," and the company is continuing evaluation of the treatment in an ongoing Phase 3 trial.

Akero Therapeutics shares were up 103% in recent trading, near their highest levels since mid-2023.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

What Analysts Are Saying About DeepSeek

Wall Street analysts were mostly skeptical about D๊eepSeek and the selloff it prompted, though their commentary often🎀 reflected uncertainty about the effects DeepSeek could have on the market.

Citi analysts expressed doubt that DeepSeek had achieved its results without the most advanced chips. They maintained their "buy" rating on Nvidia (NVDA) stock and said they don't expect major U.S. AI companies to move away from using its advanced GPUs. Nvidia shares were down 15% in recen🌜t trading.

Jefferies analysts, however, noted DeepSeek's success could press Silicon Valley management to "refocus on efficiency and ROI, meaning lower demand for computing power as of 2026."

Concern about future AI models requiring less computing power weighed on other high-flying AI stocks, including nuclear power providers Vistra (VST) and Constellation Energy Corp. (CEG), down 26% and 19%, respectively. Nvidia competitor Broadcom (AVGO) slumped more than 15%.

-澳洲幸运5官方开奖结果体彩网:Colin Laidley

Why Nvidia Shares Are Tanking on Monday

Shares of Nvidia (NVDA) tumbled Monday after the release of a sophisticated artificial intelligence model from a Chinese startup 澳洲幸运5官方开奖结果体彩网:prompted a reckoning on Wall Street regarding AI spending.

Chinese company DeepSeek last week released R1, an AI model that appears to rival the capabilities of models from U.S. tech giants like OpenAI and Google despite running on fewer, le🌟ss powerful chips. U.S. investors began to take notice of the model late last week, and over the weekend started to worry about what it means for richly valued U.S. tech stocks. 

Nvidia’s earnings and stock price have soared in the past two years as tech giants like Microsoft (MSFT), Alphabet (GOOG)(GOOGL), and Amazon (AMZN) have speܫnt massively on its AI systems. DeepSeek has led investors to question whether all that spending was necessary and, if not𝔉, why it would continue.

Nvidia stock wa♏s hammered by Monday’s sell-off. Shares tumbled more than 13% in recent trading, its largest intraday drop since a tech rout in August. At its deepest, Monday’s sell-off wiped nearly $480 billion fr🍎om Nvidia’s market cap. 

-澳洲幸运5官方开奖结果体彩网:Colin Laidley

AT&T Stock Surges After Strong Earnings Report

AT&T (T) shares surged Monday morning after the telecommunications giant reported better-than-expected fourth-quarter re༺sults.

The company reported net income that jumped 70% year-over-year to $4.41 billion, or 56 cents per share, on reven꧒ue of $32.3 billion. Analysts polled by Visible Alpha expected profit of $3.38 billion, or 46 cents per share, on roughly flat 🎀revenue of $32.07 billion.

The company also said it expects low-single-digit 2025 service revenue growth, along with adjusted EBITDA growth of at least 3%.

AT&T added a net 482,000 postpaid phone customers in the quarter, along with 307,000 net subscribers for its fiber internet service, which it said has gained at least 200,000 net adds for 20 cons๊ecutive quarters.

AT&T shares were u🔯p nearly 7% in recent trading, reaching their highest level since May 2021. The stock is now up 38% over the past 12 months, outpacing the gains of the S&P 500 over that period.

AT&T's rival Verizon Communications (VZ) 澳洲幸运5官方开奖结果体彩网:beat Q4 estimates on Friday, and T-Mobile (TMUS) is slated 🧸to report results on Wednesday morning

-澳洲幸运5官方开奖结果体彩网:Aaron McDade

Futures Point to Sharply Lower Open for Major Indexes

Fu🍌tures tied to the Dow Jones Industr🦋ial Average were off 0.7%.

S&P 500 futures were off 2.1%.

Nasdaq 100 futures plunged 3.6%.