Why Tech Stocks Dropped Monday [Video]

Technology stocks struggled across the board Monday, including declines among Magnificent 7 firms and a big hit to quantum computing stocks.

The S&P 500 technology sector fell about 0.9%, and the tech-heavy Nasdaq Composite finished 0.4% lower. The decline follows broad market struggles on Friday after labor market data for December came in hotter than expected, leading investors to scale back their expectations for Federal Reserve rate cuts.

The Magnificent 7 were not spared, with Nvidia (NVDA) stock losing 2% and Apple (AAPL) and Meta Platforms (META) shares declining about 1%. The only member of the group in the green was Tesla (TSLA), with shares up 2%.

Nvidia’s drop came even as the chipmaker announced a series of AI healthcare partnerships with Mayo Clinic, IQVIA Holdings (IQV), and Illumina (ILMN) on Monday, as the Biden administration proposed new rules on exporting AI chips. Nvidia called the new restrictions, meant …