Traders work on the floor of the New York Stock Exchange on December 15, 2025 in New York City, USA.
Brendan McDiarmid | Reuters
of S&P500 Major stocks in the artificial intelligence industry came under pressure, ending slightly lower on Monday.
After starting in positive territory, the composite market index fell by 0.16% to settle at 6,816.51. of Dow Jones Industrial Average It fell 41.49 points (0.09%) to end at 48,416.56. Nasdaq Composite It fell 0.59% to 23,057.41.
Some AI stocks muddied the entire market during Monday's trading. broadcom and oracle — the names of two companies that led the move away from AI last week — fell more than 5% and 2%, respectively. other people like microsoft also suffered some losses.
Investors instead moved to economically sensitive sectors such as consumer staples and industrials. Healthcare stocks also increased.
The moves come after the S&P 500 and the tech-heavy Nasdaq ended the week lower, while the Dow 30, which has less exposure to tech and AI than the other two benchmarks, rose significantly. Additionally, Oracle is down 12.7% for the week, and Broadcom is down more than 7%. The S&P 500 tech sector fell 2.3%.
“I feel like everyone hates the AI industry right now, there's no question about it,” David Wagner, head of equities at Aptus Capital Advisors, told CNBC. “But I see the market as continuing to be driven by market concentration, the names of the Magnificent Seven, because of the core tenets that I think continue to keep the market undervalued. [which] It's the operating leverage these companies have. ”
He added: “As long as there is some form of revenue growth, these companies will continue to expand their margins and will benefit from significant profits next year.”
In the short term, Wagner said he's not too worried about overall market performance, saying a pullback could be “healthy” and “normal.” While some of the so-called Santa Claus rallies likely happened, he expects “there will still be some benefit.”
“For the market to change, the fundamentals have to change, and I don't see that happening for a while,” he said.
Economic data releases could set the tone for markets this week. Nonfarm payrolls for November will be released on Tuesday, as will retail sales figures for October. These reports were delayed by the U.S. government shutdown that occurred in the fall.
Economists polled by Dow Jones expect nonfarm payrolls to rise by 50,000 in November from the previous month, a sharp decline from the 119,000 increase in September.
The consumer price index for November is scheduled to be released later in the week on Thursday.
