ARTICLE AD BOX
Traders work on the floor of the New York Stock Exchange during morning trading on Feb. 19, 2025.
Michael M. Santiago | Getty Images News | Getty Images
During Monday's regular trading, shares of key tech companies dragged down the S&P 500 and the Nasdaq Composite to session losses. Defense tech and artificial intelligence play Palantir extended last week's decline by falling more than 10%, while Microsoft lost 1% on the heels of a TD Cowen report signaling that the company is slashing data center spending. Nvidia also shed 3% ahead of its quarterly results due Wednesday after the bell.
Monday's decline among tech names also pulled the Nasdaq Composite into negative territory year to date.
"Investors in the market more broadly, they sort of almost want to believe that the AI trade is over. They're looking for evidence [and] reasons to doubt," Doug Clinton, a managing partner at Deepwater Asset Management, said on CNBC's "Closing Bell" on Monday. "From our perspective, the AI trade is still real. I don't think this boom is over. I still think we have two to four years to go."
Along with Nvidia's earnings this week, Wall Street is looking ahead to a batch of other key results, including Home Depot's release before the opening bell on Tuesday.
On the economic front, investors are also turning their attention to the latest U.S. consumer confidence data due out at 10:00 a.m. ET Tuesday. Economists polled by Dow Jones are expecting the Conference Board's consumer confidence index to show a reading of 102.3 for February, less than the previous month's reading of 104.1.
The report comes ahead of a slew of other economic data releases later in the week, including January's personal consumption expenditures price index reading Friday. The PCE is the Federal Reserve's preferred inflation gauge.
Hims & Hers Health among the names making moves after hours
Check out some of the stocks making moves in extended trading:
- Hims & Hers Health — The telehealth stock fell more than 17%. Hims & Hers reported a gross margin of 77% for the fourth quarter, while analysts polled by StreetAccount expected 78.4%. This overshadowed the company's top- and bottom-line beats for the quarter.
- Zoom Communications — Shares of the video-conferencing company fell about 1% after Zoom Communications delivered a revenue outlook that narrowly missed analysts' expectations. The company is calling for full-year revenue of $4.79 billion to $4.80 billion, while analysts polled by LSEG looked for $4.81 billion.
- Cleveland-Cliffs — The steel producer pulled back 2% after its fourth-quarter results missed Wall Street's expectations. Cleveland-Cliffs reported a loss of 92 cents per share on $4.33 billion in revenue. Analysts had penciled in a loss of 61 cents per share and $4.43 billion in revenue for the quarter, per LSEG.
Read the full list here.
— Sean Conlon
English (US)