The S&P 500 experienced a slight decline on Monday, as the market was unable to recover from the significant losses incurred on Friday.
Major tech companies were particularly affected, with their shares experiencing downward pressure.
At the time of writing, the Dow Jones Industrial Average was largely flat from the previous close.
However, the tech-heavy Nasdaq Composite dropped 1%, and the S&P 500 index fell 0.4%.
Palantir’s shares fell over 10% on Monday, contributing to the Nasdaq’s decline.
Microsoft dropped 2% following a TD Cowen analyst report suggesting the company is reducing data center spending, sparking concerns about potential weakness in the artificial intelligence sector.
Chipmaker Nvidia also experienced a 0.6% slip.
“Friday saw a big drop in the US Services PMI, taking it below 50 and into contraction territory. This was partially offset by an uptick in the Manufacturing PMI,” David Morrison, senior market analyst at Trade Nation said.
“But the change in both numbers was attributed to political uncertainty, with tariff threats and Federal spending cuts dampening services, while manufacturing benefitted from businesses boosting orders to get ahead of possible trade levies.”
Investors are looking forward to earnings reports from Home Depot and Lowe’s on Tuesday and Wednesday, respectively, to gain insights into US consumer spending.
Additionally, Nvidia’s earnings report on Wednesday evening will be closely watched.
These reports are part of a week filled with important economic data and corporate earnings releases.
The January reading of the personal consumption expenditures index, the Federal Reserve’s preferred measure of inflation, will be released on Friday.
Palantir shares plunge
Shares of Palantir, a popular tech and defense stock among retail investors, continued to decline on Monday morning, dropping by around 10%.
If the downward trend persists, it will be the stock’s fourth consecutive day of losses, extending a losing streak that has alarmed investors.
The company’s shares have experienced a significant decline, dropping by approximately 23% over the past five trading days.
Despite this recent downturn, the stock has shown a positive overall performance in 2025, boasting a gain of more than 21%.
This overall increase is largely attributed to a strong rally at the beginning of the year, which set a positive tone for the stock’s performance.
Domino’s Pizza falls after earnings miss
Domino’s Pizza shares experienced a decline exceeding 3% following the release of their fourth-quarter results, which fell short of anticipated figures.
While the company reported earnings of $4.89 per share on revenue of $1.44 billion, analysts polled by FactSet had projected a profit of $4.90 per share on revenue of $1.48 billion.
Additionally, the US same-store sales, a crucial metric for Domino’s, only saw a 0.4% increase, compared to the 1.1% advance predicted by consensus forecasts.
Apple’s ambitious plan
In a major announcement on Monday, Apple revealed its ambitious plan to invest over $500 billion in the United States.
This substantial investment aims to bolster Apple’s artificial intelligence (AI) capabilities and solidify its position as a leader in the AI landscape.
A key component of this investment is Apple’s commitment to job creation within the US.
The company plans to hire approximately 20,000 workers, further stimulating the American economy and contributing to technological advancement.
Furthermore, Apple’s investment will manifest in the construction of a state-of-the-art factory dedicated to the production of AI servers.
Located in Texas, this facility is projected to commence operations in 2026.
At the time of writing, Apple’s stock was up 0.7% from the previous close.
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