Tech Stocks Under Pressure: Nvidia Announcements and Quantum Computing Comments Cause Strain

Technology stocks came under pressure during intraday trading on Monday, with the "Magnificent 7" companies also incurring losses, while stocks in the quantum computing sector saw significant declines. The technology sector in the S&P 500 recorded a decline of about 1.3%, while the tech-heavy Nasdaq Composite fell by more than 1%. This decline follows the general market issues from Friday, when December employment data showed unexpectedly strong figures, dampening investors' expectations for interest rate cuts by the Federal Reserve. Nvidia was hit particularly hard, despite announcing new partnerships with the Mayo Clinic, IQVIA Holdings, and Illumina to use their technologies for developing AI agents. The stock fell by almost 3%, while Apple and Meta Platforms each lost nearly 2%. Tesla, on the other hand, defied the trend with a slight increase of 0.2%. Quantum computing companies continued their downward trend after Meta CEO Mark Zuckerberg, like Nvidia CEO Jensen Huang before him, made skeptical statements about the near-term usability of quantum computing technology. Zuckerberg stated in a radio broadcast that the technology is still far from becoming truly useful. Consequently, Rigetti Computing, D-Wave Quantum, IonQ, and Quantum Computing suffered significant price losses.