Luke Kawa2/24/25

Stocks drop again as tech tumbles

The S&P 500 fell 0.5%, closing below its 50-day moving average and near its lows of the day to mark the benchmark gauge’s first three-session losing streak of 2025. The Nasdaq 100 gave back 1.2% while the Russell 2000 declined 0.8%.

Despite the losses, 74 more S&P 500 constituents advanced than declined.

Tech was far and away the worst-performing S&P 500 sector ETF, off 1.4% on the day. Healthcare, a more defensively oriented part of the market, did the best.

Berkshire Hathaway was a particularly bright spot on the tape, up 4% after reporting robust quarterly results and a humongous cash pile.

Price action continues to be market by a momentum unwind: Palantir was down double digits, the worst performer in the S&P 500, while companies levered to AI data centers and power generation, like Arista Networks and Vistra, also got clobbered amid concern that Microsoft is oversupplied in this area. The Magnificent 7, as a basket, are down 3.3% on the year after falling 4.4% in the past three sessions, with Nvidia weighing the most on the cohort to open the week.

Alibaba’s mammoth run reversed hard, with shares off double digits as the company outlined plans to spend over $50 billion on the AI build-out over the next three years.

JPMorgan declined despite a positive day for financials as CEO Jamie Dimon said he is “reluctant” to buy back stock at these levels.

Super Micro Computer got dumped ahead of tomorrow’s deadline to submit filings or be delisted from the Nasdaq.

Rivian sank after Bank of America downgraded shares of the electric vehicle maker, citing a host of challenges ahead.

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Markets droop as AI credit fears grow and jobs report looms

The S&P 500, Nasdaq 100, and Russell 2000 all slumped on Monday.

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Bitcoin-sensitive stocks hammered as crypto declines

Bitcoin-sensitive stocks tumbled Monday, enduring a much steeper drop than the keystone crypto asset itself, which was down nearly 4%, falling below $87,000, as of 12:20 p.m. ET.

Goldman Sachs’ themed basket of bitcoin-sensitive equities was down more than 8%. (It consists of companies tied to bitcoin, either through mining, digital payments, crypto investment, or blockchain technology.) It was one of the worst performers among Goldman’s thematically curated baskets of shares on Monday.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

Among the basket’s constituents, miners Cipher Mining, CleanSpark, Hut 8, TeraWulf, and IREN were getting the worst of it.

At midday, the basket was on its way to its worst day since November 24, when bitcoin was also languishing below $90,000 and the broader tech sector was going through a brief downturn related to rising worries about durability of the AI boom.

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Nvidia’s favorite stocks are getting shellacked as AI credit risk spreads

Nvidia’s “House of GPUs” is looking a little wobbly.

Shares of Applied Digital, CoreWeave, and Nebius — three of the four biggest equity positions held by the chip designer as of September 30 — are getting crushed on Monday.

Nvidia owned about $3.6 billion worth of these data center and neocloud stocks (with the overwhelming majority in CoreWeave) per its most recent 13F filing.

The AI credit risk that’s been most talked about in reference to Oracle’s widening credit default swaps spreads is also present in some of these firms, as well.

An Applied Digital bond due in 2030 is trading below $96 for the first time this month. That issuance was made to support data centers where CoreWeave will be the main tenant.

CoreWeave, which earlier this year received warrants enabling it to purchase a large chunk of Applied Digital shares as part of a data center leasing deal, sank last week after announcing a $2 billion convertible note offering that was later upsized.

Of course, it’s not just Nvidia-owned stocks, but the entire data center ecosystem that’s under pressure on Monday. Cipher Mining and IREN are also getting walloped — with Monday’s crypto tumble also likely weighing on these two bitcoin miners turned data center companies.

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