S&P 500, Nasdaq retreat from records as Nvidia shares slide: Live updates

The S&P 500 and Nasdaq Composite pulled back from record highs Monday, with tech shares struggling and investors looking ahead to key inflation data due out this week.

The tech-heavy Nasdaq and the broad market S&P 500 each lost 0.5%. The Dow Jones Industrial Average also shed 87 points, or 0.2%.

Nvidia shares dropped around 3% on the heels of a Chinese regulator announcing that it’s investigating the AI chip darling for potentially violating the country’s antimonopoly law. The stock has been a bellwether for the artificial intelligence trade, up about 179% in 2024.

Advanced Micro Devices, another chipmaker, was also under pressure 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.” Other tech stocks like Tesla, Meta and Netflix also struggled, falling more than 1%, around 2% and nearly 3%, respectively.

Meanwhile, 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.

The moves come after the S&P 500 and Nasdaq closed at fresh records Friday, rising 1% and 3.3% for the week, respectively. The Dow was the lone laggard, closing the week down 0.6%.

“In general, you still have an upward trajectory in the market because of the favorable seasonals, etc.,” Sam Stovall, chief investment strategist at CFRA Research, told CNBC. He added that news like China’s investigation into Nvidia will “provide some hurdles along the way, but I don’t think [that] will upend the advance through year-end.”

“It will continue to climb a wall of worry this year and end up surpassing the advance that we saw last year,” the strategist continued.

The November consumer price index, due out Wednesday, is expected to show a slight uptick in pricing pressures. Economists polled by Dow Jones expect a 0.3% and 2.7% monthly and yearly increase, respectively. That would be up from 0.2% and 2.6%, respectively, from the prior month.