The Dow Jones Industrial Average and other major indexes traded sharply lower Monday after a Chinese tech company released a new artificial intelligence model over the weekend that could pose a threat to Nvidia and other U.S. companies developing AI. Nvidia stock took a severe hit on the stock market today as a result and led stocks lower.
Meanwhile, the markets got another temporary scare during the weekend as President Donald Trump threatened to impose tariffs for Colombia regarding deportations. But that nation agreed to U.S. terms and Trump backed off his threat.
After the opening bell, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 plunged 1.7%. The tech-heavy Nasdaq composite tumbled 2.8% in morning trades.
The 10-year Treasury yield dropped to 4.5% early Monday. And oil prices declined, with West Texas Intermediate futures trading around $74.35 per barrel.
Among exchange traded funds, the Invesco QQQ Trust lost almost 3%, as the SPDR S&P 500 ETF sold off nearly 2% after the open.
Over the weekend, it was reported China's DeepSeek poses a threat to AI stocks as the startup's apparent advances have raised questions over the computing power needed to develop artificial intelligence systems, a key driver for stocks in that sector. DeepSeek said it spent just $5.6 million developing its new AI model.
The Wall Street Journal reported on the AI phenomenon on Sunday.
As a result, Nvidia plunged as much as 13% in morning trading Monday before paring losses to 11%. That placed shares below their 50-day line and just above the long-term 200-day line. Nvidia stock had tumbled more than 3% Friday, snapping a four-day win streak, but still held above the key 50-day line.
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Stock Market Today: Trump Tariff On Colombia
In a Truth Social post Sunday, Trump directed his administration to issue "emergency 25% tariffs [against Colombia] on all goods coming into the United States," along with other retaliatory measures in response to the South American country's decision to block U.S. deportation planes. After one week, the 25% tariffs would then be raised to 50%.
Barron's reported Sunday that stock futures were trending down as a result. But a few hours later, Colombia said it had agreed to "all of President Trump's terms," as the U.S. backed off its threat to impose tariffs.
This week's big economic news is the Federal Reserve's interest rate decision on Wednesday. Markets currently don't expect a rate cut until June, though the May meeting is a close call.
Later in the week, the first official estimate of fourth-quarter GDP growth arrives Thursday. On Friday, January consumer spending figures include the Fed's primary inflation rate, the core PCE price index.
Elsewhere, key earnings movers Monday morning include AT&T and SoFi Technologies. AT&T stock rallied 5%, while shares of SoFi plummeted more than 9% in early trading.
Other big companies reporting earnings this week include Apple, Microsoft, Meta Platforms and Tesla.
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Dow Jones Eases
On Friday, the Dow Jones Industrial Average fell 0.3%, as did the S&P 500. The Nasdaq lost 0.5%. Following recent bullish action, now is a good time to check IBD's The Big Picture for an update on the current exposure level.
Among the best companies to watch in the current stock market are Broadcom, Meta Platforms, Netflix and Spotify.
Along with Apple and Nvidia, Dow Jones components making notable moves were Amazon.com, Microsoft and Walmart.
Meta and Walmart are featured in this Stocks Near A Buy Zone column.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones: Walmart Eyes Buy Point
Dow Jones retail giant Walmart is moving closer to a flat base's 96.18 buy point, according to MarketSurge pattern recognition. Shares gained 0.2% Monday.
Outside the Dow Jones index, chip giant Broadcom closed Friday within striking distance of a 251.88 buy point in a flat base. Broadcom stock plunged 12% in morning action Monday.
Social media platform Meta is breaking out past a 638.40 buy point. But Meta stock declined 1.4% in Monday's trading.
Streaming giant Netflix is at the top of the buy range past a 941.75 buy point in a flat base following last week's earnings-fueled gains. Shares lost 1.2% Monday.
Meanwhile, Spotify in buy range past a flat base's 506.47 entry amid a four-day win streak. Shares tumbled almost 2% Monday morning.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Broadcom | 251.88 | Flat base | |
| Walmart | 96.18 | Flat base | |
| Spotify | 506.47 | Flat base | |
| Meta Platforms | 602.95 | Flat base |
Source: IBD Data as of Jan. 20
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Tesla Stock Skids
Electric-vehicle giant Tesla dropped 1.4% Friday, extending a losing streak to four sessions. Shares are again attempting to find support around their 10-week line, and they may be forming a new base.
Tesla stock skidded another 1.1% in morning action Monday.
Dow Jones Leaders: Amazon, Apple, Microsoft
Besides Nvidia, another Dow Jones component in the Magnificent Seven is Amazon stock, which rallied last week to break out above a 233 buy point in a flat base. That's a new buying opportunity for the e-commerce giant. It sold off 2.4% in early action Monday.
Shares of Apple fell 0.4% Friday, holding near their mid-September lows. Shares were up 1.1% early Monday.
Microsoft shares dropped 3.9% Monday morning. Last week, the software giant bullishly reclaimed its 50-day moving average.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
