FX.co ★ US Stocks Pull Back from Records

U.S. stocks experienced declines on Monday after reaching record highs on Friday, fueled by concerns over potentially inflated valuations in the AI sector, resulting in some losses for major tech companies. The Nasdaq 100 decreased by 0.4%, while the S&P 500 lingered just below breakeven, and the Dow Jones Industrial Average remained nearly steady. Notably, Tesla and Nvidia each saw declines exceeding 2% as lighter holiday trading prompted investors to reevaluate whether the significant capital expenditures in AI for software and datacenter firms will yield the anticipated returns. Meanwhile, commodity producers were under the spotlight, as speculative trading and geopolitical instability perpetuated volatility in raw materials markets. Freeport-McMoRan saw declines due to a drop in the silver and copper benchmarks from their recent highs. Conversely, Chevron and ExxonMobil experienced gains, boosted by a U.S. prohibition on Venezuelan tankers that propelled oil prices upwards.