Nasdaq 100: Apple and Nvidia Selloff Sparks AI Concerns – What’s Next for US Stocks?

Apple and Nvidia Selloff Weighs on Nasdaq as Traders Assess AI Risks

The Nasdaq Composite fell 4% on Monday, pressured by sharp declines in Apple and Nvidia. Apple dropped 4.85%, marking its worst single-day performance in over two years, while Nvidia fell 5.1%. The selloff came as investors reassessed expectations for AI-driven growth and factored in broader risks beyond potential tariffs. As traders look ahead to Tuesday, the market’s direction will likely hinge on whether these key stocks stabilize or extend losses.

Is Apple’s AI Delay Raising Broader Concerns?

Apple’s stock decline followed reports that the company is delaying its highly anticipated AI-powered Siri upgrade. Initially expected in April or May, the update has been pushed to an unspecified time “in the coming year.” Analysts had projected that the upgrade would help drive an iPhone sales boost, but Citi’s Atif Malik revised growth estimates from 5% to 2%, forecasting 232 million units sold.

Beyond AI concerns, Apple faces potential financial headwinds from tariffs. If the company does not secure exemptions, Malik estimates that tariffs could cut into gross margins by 1.7 points. While tariffs remain a factor, Monday’s selloff reflected a deeper investor concern—whether Apple’s AI offerings can compete effectively with those of Microsoft and Google.

Is Nvidia Losing AI Dominance?

Nvidia’s 5.1% decline extended a broader cooling in AI-driven enthusiasm. While profit-taking played a role, the emergence of new AI competition fueled additional selling pressure. DeepSeek recently introduced a new AI model that delivers strong performance with lower computing requirements, raising questions about Nvidia’s continued dominance in the AI chip sector.

These concerns contributed to a record single-day market value loss of nearly $600 billion across the AI sector. Traders are now watching for signs that AI-driven demand could slow as competition intensifies and enterprise spending patterns shift.

How Will This Shape Tuesday’s Nasdaq Session?

The Nasdaq’s direction will likely hinge on whether Apple and Nvidia stabilize or extend losses. If Apple’s AI concerns deepen, the stock could test lower support levels, dragging down broader tech sentiment. Similarly, if Nvidia fails to show resilience, traders may view this as confirmation that the AI rally is losing steam.

With two of the Nasdaq’s most influential stocks under pressure, broader tech volatility is likely to persist. Traders will monitor pre-market action for institutional positioning and any corporate updates on AI strategies. How Apple and Nvidia trade on Tuesday will set the tone for the broader market.

More Information in our Economic Calendar.