Key points:

  • The Dow Jones index rose 0.66%, reaching a one-month high.
  • Nvidia shares fell 6.68% after becoming the world’s most valuable company last week.
  • Meta Platforms and Apple are in talks to incorporate Meta’s generative AI model into Apple’s new AI system for iPhone.

The Dow Jones index advanced Monday, hitting a one-month high, while the Nasdaq ended the day down more than 1%. Investors bought shares of lagging companies and sold off papers related to artificial intelligence, betting on a possible Fed cut in interest rates this year.

The S&P 500 index lost 15.73 points (-0.29%) to close at 5,448.89 points. The Nasdaq Composite fell 190.19 points (-1.09%) to 17,499.17. In contrast, the Dow Jones rose by 257.99 points (+0.66%), closing at 39,408.32 points.

Traders take profits on Nvidia

The S&P 500 and Nasdaq ended the day lower, driven by profit-taking in technology stocks that have led this year’s rally. Despite the overall negative dynamics, nine of the eleven major industries included in the S&P 500 index showed growth.

Nvidia shares fell 6.68% for the third day in a row. This follows the company’s achievement of the status of the most valuable company in the world last week, which provoked a wave of profit taking by investors.

Shares of other chipmakers, including Taiwan Semiconductor Manufacturing, Broadcom, Marvell Technology and Qualcomm, also fell, ranging from 3.53% to 5.7%. As a result, the chip stock index lost 3.02%.

Apple and Meta discussed partnership in the field of artificial intelligence

Talks are underway between Facebook owner Meta Platforms and Apple to incorporate Meta’s generative artificial intelligence model into Apple’s new iPhone AI system, according to a report Sunday by the Wall Street Journal.

The move is in line with Apple’s strategy of opening up its platform to third-party AI technologies. Apple has previously reported a potential collaboration with longtime search partner Alphabet-owned Google.

Apple is also expected to negotiate partnerships with other artificial intelligence companies in various regions, including China, where the Microsoft-backed OpenAI ChatGPT chatbot is banned.