Nvidia’s Selloff Extends to 13% – US Market Wrap

Stocks fell as an approximately $400 billion drop in Nvidia fueled speculation that the rally in the industry that has propelled the bull market was coming to an end.

While various sectors outside the technology world advanced on Monday, Nvidia extended a three-day loss to 13%, crossing the technical threshold for correction. The chipmaker at the centre of the artificial-intelligence revolution has become the most expensive stock in the S&P 500. It is still up nearly 140% this year, making it the benchmark gauge’s second best performer, trailing only Super Micro Computer, another popular AI play.

The S&P 500 fell below 5,450. Energy and financial stocks rose as technology fell. The Nasdaq 100 fell 1.2% after approaching the 20,000 mark last week. Nvidia fell 6.7%. A chipmaker index dropped 3%, with 29 of the 30 stocks falling. The Dow Jones Industrial Average has outperformed.

Treasury 10-year yields fell two basis points, to 4.24%. Bitcoin fell below $60,000. Losses are piling up in the cryptocurrency market following its second-worst weekly decline in 2024, reflecting lower demand for Bitcoin exchange-traded funds and monetary policy uncertainty.