IXIC: Nasdaq Composite Wipes Out 1.2% as Tech Crumbles Under Gloomy Outlook

Dow Jones scored a win Monday while the bears were holding the broad markets in a tight grip. What’s next for stocks?

📣 Dow Makes It Out

• The Nasdaq Composite index IXIC slumped to kick off the trading week, posting a 1.2% Monday loss. Markets, especially the tech sector, weren't in the groove for gains as investors were challenged by rising tariff threats and an overall murkier outlook for corporate growth.
• The S&P 500 joined its tech peer underwater, posting a 0.5% decline on the day. The Dow Jones Industrial Average was a winner, up a mere 33 points, or less than 0.1%.

💧 Nasdaq Washes Out All 2025 Gains

• The Nasdaq’s Monday decline cost it all the gains made throughout 2025 as the hype around Donald Trump’s America-first policies had turned from a bonanza to a drought. The US President’s hostile efforts to impose tariffs as a way to assert US dominance have dented corporate America’s bright outlook.
• Trump said Monday that his planned tariffs on Mexico and Canada are “going forward on time, on schedule.” He called out other nations for “taking advantage” of the US on “just about everything.” “So the tariffs will go forward, yes, and we’re going to make up a lot of territory,” Trump said.

📚 A Look at Technicals

• Technicals show that the recent drop in the S&P 500 pushed the index below the 50-day moving average. The indicator is widely regarded as a gauge of market sentiment and a drop under the line suggests that bears might be taking control.
• Some analysts believe that the early-week drop might be a precursor to Nvidia’s NVDA earnings report. Coming Wednesday, the chip giant’s fourth-quarter update is expected to make a big splash as traders anticipate record sales and optimistic forward guidance.