Last Friday, the U.S. non-farm payroll report severely impacted the market's expectations for continued interest rate cuts by the Federal Reserve this year, leading to a decline in major U.S. stock indices, with chip stocks leading the drop. On Monday, technology stocks fell even more sharply, with other tech stocks that had been popular over the past two years also suffering significant losses, leaving &#34;no survivors.&#34;
Including Microsoft, Apple, NVIDIA, Google's parent company Alphabet, Amazon, Facebook's parent company Meta, and Tesla, the tech giants known as the &#34;Magnificent 7&#34; all fell by at least 1% during the trading session. NVIDIA, which saw the largest intraday drop, fell 4.7% when it hit a daily low early in the session, but the decline gradually narrowed, ending the midday session down less than 2%.
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Among the seven giants, Tesla, which fell more than 1% at midday, had once dropped 3.7% early in the session, while Apple had seen a 3% drop in the morning. Alphabet fell more than 2% early in the session, and Meta, which was the only stock to close up last Friday, fell more than 2% at midday.
Chip stocks have now fallen for four consecutive trading days. The Philadelphia Semiconductor Index dropped more than 2% early in the session but was down less than 1% by midday. Micron Tech fell more than 6% in the morning, Arm dropped over 4% during the session, Intel fell over 2%, and AMD had previously dropped more than 1% before slightly turning down at midday.
Last year's big winners in U.S. tech stocks were not spared on Monday. AppLovin (APP), which skyrocketed 758% last year due to its transformation into an AI advertising engine and topped the Nasdaq in gains, fell about 3.6% at one point. Palantir, a big data star that surged 380% last year due to AI demand, dropped over 5.7% during the session. MicroStrategy (MSTR), a commercial software company that continued to rely on large Bitcoin purchases, fell nearly 7.4% during the session.
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Quantum computing concept stocks, which had been highly favored in recent months, collectively saw double-digit declines during the session on Monday. D-Wave Quantum (QBTS) dropped over 30%, Rigetti Computing (RGTI) and Quantum Computing (QUBT) fell over 20% at midday, and IonQ (IONQ) dropped over 10% during the session.
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This year's strong performer among nuclear power concept stocks, Constellation Energy (CEG), saw a significant drop on Monday, falling over 8% during the session, distancing itself from the record closing high set last Friday. Last Friday, Constellation announced its agreement to acquire independent power company Calpine for $16.4 billion, causing its stock price to rise over 25% against the market trend.
In addition to Jensen Huang's admission last Tuesday that &#34;useful&#34; applications of quantum computing will take decades to materialize, and last Friday's U.S. non-farm payroll report, Wall Street Journal noted that technology stocks faced new negative news on Monday.
According to CCTV reports, the Biden administration announced export control measures related to artificial intelligence on January 13. A spokesperson for China's Ministry of Commerce stated that China has noted the U.S. measures further tightening export controls on AI chips, model parameters, etc., and expanding extraterritorial jurisdiction, creating obstacles and interference for third parties conducting normal trade with China.
The spokesperson stated that the Biden administration is abusing export control measures, severely hindering normal economic and trade exchanges between countries, seriously disrupting market rules and international economic and trade order, significantly affecting global technological innovation, and seriously harming the interests of enterprises worldwide, including U.S. companies. China will take necessary measures to firmly safeguard its legitimate rights and interests.
Additionally, according to media reports, NVIDIA's latest generation AI chip, Blackwell, encountered technical issues during deployment to data centers, primarily including server rack overheating and chip connection abnormalities. Due to these issues hindering chip deployment to data centers, several of NVIDIA's clients, including Microsoft, Amazon, Google, and Meta, recently canceled some orders for Blackwell GB200 racks. Among them, Microsoft has changed its original plan for the Phoenix data center to use the GB200 chip to adopting the previous generation H200 chip.
Regarding the significant drop in technology stocks on Monday, AXS Investments CEO Greg Bassuk commented that last year, tech stocks benefited from expectations and actions of the Federal Reserve's interest rate cuts, but both Wall Street and ordinary retail investors hold serious doubts about further rate cuts from the Fed. The non-farm payroll report released last Friday, which showed growth significantly above expectations, &#34;solidified&#34; these concerns.
Monday's movement occurred after many key technology stocks, particularly quantum computing concept stocks, fell last week. Truist Advisory Services' co-chief investment officer Keith Lerner pointed out that these leaders will eventually enter an adjustment phase. He believes that the overall upward trend in the market &#34;remains intact,&#34; but is undergoing adjustments.
Lerner stated, &#34;In our view, this is a necessary component of the adjustment phase, which may be deeper than many investors realize, as many stocks peaked at the end of November and early December (last year).&#34;
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NVDA

Last Friday, the chip stocks that led the decline in the U.S. stock market continued to fall, with Micron Tech dropping over 6% at one point; AppLovin, which had the highest increase in the Nasdaq last year, fell over 3% during trading; the "meme stocks" in the quantitative sector collectively dropped by double digits, with D-Wave Quantum falling over 30% during trading. Following last Friday's non-farm payroll report that dampened interest rate cut expectations, the U.S. stock market faced another negative factor: the Biden administration announced export controls related to AI; NVIDIA's next-generation data center chips were reported to have been canceled by customers due to faults

- The U.S. non-farm payroll report last Friday negatively impacted market expectations for further Federal Reserve rate cuts, leading to declines in major U.S. stock indices, particularly in tech and semiconductor stocks.  
- Notable tech giants, including Microsoft, Apple, and Nvidia, experienced significant intraday drops, with Nvidia falling as much as 4.7% before recovering slightly.  
- Additionally, new AI export controls announced by the Biden administration and technical issues with Nvidia's latest AI chips contributed to the overall downturn in the tech sector.

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"No one survives"! Popular tech stocks fell across the board, with MSTR down over 7%, Palantir down nearly 6%, and NVIDIA down nearly 5%