The technology is selling but AI isn't going anywhere right now

This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Technology drags the Nasdaq down
It was the American markets The two are mixed. the Standard & Poor's 500 and Dow Jones Industrial Average rose, but Nasdaq Composite It fell amid a widespread technology sell-off. Pan-European Stoxx 600 index It decreased by 0.55% Most sectors are in negative territory. Borrowing costs rose in the UK on Monday, raising concerns Reduce public spending or increase taxes.

Potential new supply for US steel
cleveland cliffs It is a partnership with a competitor Nocor In a Potential bid to United States steelwhich was acquired by Japan Nippon Steel It was banned by the White House earlier this month, sources told CNBC's David Faber. The offer will be at a high stake of $30. Nippon had planned to buy US Steel for $55 per share in a deal worth more than $14 billion.

Inflation slows in India
India's annual consumer price inflation rate reached in December 5.22%, According to the Ministry of Statistics and Program Implementation. This reading is lower than expectations of 5.30% in a Reuters poll of analysts, and the second month in a row in which price growth has declined. A weaker inflation reading gives room for the Reserve Bank of India to cut interest rates, Amid slow growth in the country.

Second strike for quantum stocks
Quantum computing stocks sold off on Monday after dead The technology is “a long way from being a very useful model,” platform CEO Mark Zuckerberg said on Joe Rogan's podcast Friday. Comments reinforce recent comments from Nvidia CEO Jensen Huang who suggested that computers are likely After 15 to 30 years.

(PRO) Ryder will buy 100% of the Nasdaq.
The Nasdaq Composite underperformed other major indexes on Monday as investors moved away from technology names. Black Rock Rick Ryder, the firm's global chief investment officer for fixed income, told CNBC he would “100 percent” buy the Nasdaq decline. Ryder He explains his decision How will he deploy downside protection?

The Nasdaq Composite Index, which is dominated by technology stocks, lost 0.38%. Big technology names are popular with investors It fell broadly in Monday's session. Palantir – the High performing stocks In the S&P last year – down 3.4%, while Nvidia lost 2%, building on its losses from last week. Nvidia shares fell nearly 6% during the period, while Palantir lost more than 15%.

“This is a necessary part of the corrective phase in our view, and we are more likely to continue this correction than many investors realize since many stocks peaked in late November and early December,” said Greg Bassuk, CEO of AXS Investments, adding that the report Jobs on Friday “reinforced” those concerns.

However, the S&P 500 rose 0.16% and the Dow Jones Industrial Average rose 0.86% as investors shifted to non-technology stocks such as Amgen, Caterpillar and UnitedHealth.

This doesn't mean that these segments will take the mantle of market leader any time soon – or at all. Sector rotation is a common phenomenon in the markets, as investors lock in their returns and look for the next stock with upside potential. and Against the backdrop of high interest rates It puts more pressure on growth-oriented technology stocks than value stocks, which typically make up the Dow Jones.

Moreover, the AI ​​craze is far from over, judging by the latest Profits Reports from TSMC and Foxconn, which trades as… Hon Hai Precision Industry. The two companies witnessed a boom in their revenues due to the high demand for products related to artificial intelligence.

There is unlikely to be a long-term rotation away from technology and AI. But one cannot be ruled out inside the field.

— CNBC's Samantha Sobin, Hakyung Kim and Brian Evans contributed to this report.