Nasdaq Index: Tech and AI Stocks Slide as Broadcom Weakness Hits US Indices

S&P 500 Slips as AI Leaders Extend Losses and Economic Data Looms

U.S. equities traded lower Monday as renewed selling in artificial intelligence-linked stocks erased earlier gains and kept major indexes in the red.

By mid-session, the Dow Jones Industrial Average fell 107.26 points, or 0.22%, to 48,350.79. The S&P 500 declined 0.15% to 6,817.14, while the Nasdaq Composite underperformed, down 0.36% at 23,111.49, pressured by weakness across large-cap technology.

Technically, the Nasdaq Composite (IXIC) crossed to the weakside of the 50-day moving average at 23120.83, indicating increasing selling pressure. The next two targets are a pair of 50% levels at 22959.14 and 22798.61.

Why Are Broad Market Indexes Losing Momentum?

The pullback reflected continued profit-taking in high-growth technology names that had driven recent index performance. AI-exposed stocks again weighed on sentiment, limiting upside across the S&P 500 despite pockets of sector strength. Traders showed caution ahead of a heavy economic calendar, reducing risk exposure in growth-heavy benchmarks such as the Nasdaq.

Which Sectors Are Holding Up Best Today?

Healthcare led S&P 500 sector performance, rising 0.79% to 1,805.23, offering defensive support as technology and energy weakened. Consumer discretionary gained 0.43%, while utilities and industrials posted modest advances. Energy was the weakest sector, down 1.30%, as broader risk appetite softened. Technology declined 0.55%, reinforcing its role as the main drag on the session.

How Are AI Stocks and ETFs Performing?

Stocks tied to artificial intelligence extended last week’s losses. Broadcom fell 4.50% to $343.72, and Oracle dropped 2.55% to $185.12, placing both among the worst performers in the S&P 500.

Salesforce slid 2.84% to $254.79, adding to pressure across enterprise software. AI-focused ETFs also moved lower, with the Dan Ives Wedbush AI Revolution ETF down 0.89% and the Roundhill Generative AI and Technology ETF off 0.66%. The declines suggest traders continue to reassess positioning after strong prior gains in the AI theme.

Which Individual Stocks Are Driving Intraday Moves?

Outside of AI, select semiconductor equipment names showed relative strength, with KLA, Lam Research, and Tesla among the top gainers. On the downside, CoStar Group and Strategy posted sharp declines, highlighting uneven stock-specific flows beneath the surface of index trading.

What Economic Data Could Influence the Next Move?

Attention now turns to delayed U.S. economic reports following the fall government shutdown. November nonfarm payrolls are due Tuesday, with economists expecting job growth of 40,000, down sharply from 119,000 in September. October retail sales data will also be released, followed by the November consumer price index on Thursday. Together, these reports will shape expectations for Federal Reserve policy into year-end.

Market Forecast: Short-Term Bearish Bias

Near-term market tone remains cautious. Continued selling in AI leaders, combined with uncertainty ahead of labor and inflation data, points to a short-term bearish bias for U.S. equities. Traders are likely to stay defensive until economic data provide clearer direction on growth and Federal Reserve policy expectations.

More Information in our Economic Calendar.