The technology is selling but AI is not going anywhere for now

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Do you like what you see? You can subscribe here.

Technology drags down the Nasdaq
US markets were mixed monday. He S&P 500 and Dow Jones Industrial Average He got up, but Nasdaq Composite fell amid a broad tech sell-off. The pan-European Stoxx 600 Index fell 0.55%, with most sectors in negative territory. UK borrowing costs rose on Monday, raising concerns about Public spending cuts or new tax increases..

Possible new US steel supply
Cleveland Cliffs is partnering with the rival Nucor in a potential offer for American steelwhose acquisition by Japan Nippon Steel was blocked by the White House earlier this month, sources told CNBC’s David Faber. The offer would be for a share of $30. Nippon had planned to buy US Steel for $55 per share in a deal valued at more than $14 billion.

Slowing inflation in India
India’s annual consumer inflation in December was 5.22%, according to the Ministry of Statistics and Program Implementation. The reading is below the 5.30% forecast by a Reuters poll of analysts, and the second straight month that price growth fell. Softer inflation reading offers RBI room to cut rates, amid a slowdown in growth in the country.

Second blow to quantum stocks
Quantum computing stocks sold off on Monday after Goal Platforms CEO Mark Zuckerberg said on Joe Rogan’s Friday podcast that the technology is “pretty far from being a very useful paradigm.” The comments reinforce recent comments by NVIDIA CEO Jensen Huang suggested that computers probably 15 to 30 years away.

(PRO) Rieder would buy 100% of the Nasdaq
The Nasdaq Composite underperformed other major indexes on Monday as investors abandoned technology names. BlackRock’s Rick Rieder, the company’s chief investment officer of global fixed income, told CNBC that he would “100 percent” buy the Nasdaq’s decline. Rieder explain your decision and how you would implement fall protection.

The tech-heavy Nasdaq Composite lost 0.38%. Big tech names popular with investors fell widely in Monday’s session. Palantir – he best performing stocks on the S&P last year—fell 3.4%, while Nvidia lost 2%, building on last week’s losses. Nvidia fell nearly 6% during the period, while Palantir lost more than 15%.

“In our view, that is a necessary part of a corrective phase and we are probably further along in this correction than many investors recognize, as many stocks peaked in late November and early December,” the director said. AXS Investments executive Greg Bassuk, adding that Friday’s jobs report “cemented” those concerns.

However, the S&P 500 rose 0.16% and the Dow Jones Industrial Average rose 0.86% as investors rotated into non-tech stocks such as amgen, Caterpillar and UnitedHealth.

That does not mean that these sectors will assume market leadership in the short term, or that they will assume the role of market leaders. Sector rotation is a common phenomenon in markets, as investors lock in their returns and look for the next stocks with upside potential. and the backdrop of rising rates puts more pressure on growth-oriented technology stocks than value stocks, which typically make up the Dow.

Furthermore, the artificial intelligence frenzy is not over, judging by the latest earnings information of TSMC and Foxconn, which operates as Hon Hai Precision Industry. Both companies saw their revenue increase thanks to the high demand for AI-related products.

A long-term rotation out of technology and AI is not likely. But one inside the field cannot be ruled out.

— CNBC’s Samantha Subin, Hakyung Kim and Brian Evans contributed to this report.