Tech stocks are selling off, but there's no progress yet on artificial intelligence

This report comes from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Tech stocks weigh on Nasdaq
U.S. markets were mixed on Monday. this S&P 500 Index and Dow Jones Industrial Average rose but Nasdaq Composite Index The decline came amid a broad selloff in technology stocks. Pan-European Stoxx 600 Index It fell 0.55%, with most sectors in negative territory. British borrowing costs rose on Monday, raising concerns about public spending cuts or further tax increases.

Potential new bid for U.S. Steel
cleveland cliffs Working with competitors Nucor in a potential bid United States Steel Corporationacquired by Japan Nippon Steel Sources told CNBC's David Faber that the plan was blocked by the White House earlier this month. Offers will be in the high share of $30. Nippon originally planned to acquire U.S. Steel for $55 per share, a deal worth more than $14 billion.

Inflation slows in India
India's annual consumer inflation rate was 5.22% in December, according to the Ministry of Statistics and Program Implementation. The reading was below the 5.30% forecast in a Reuters analyst poll and was the second consecutive monthly decline in price growth. Amid slowing economic growth in India, weak inflation data provides room for the Reserve Bank of India to cut interest rates.

The Second Strike for Quantum Stocks
Quantum computing stocks sold off on Monday Yuan Platforms CEO Mark Zuckerberg said on Joe Rogan's podcast Friday that the technology is “a long way from being a very useful paradigm.” These comments reinforce recent comments NVIDIA CEO Jen-Hsun Huang said computers could take 15 to 30 years to come out.

(PRO) Rieder Will 100% Buy Nasdaq
The Nasdaq Composite lagged other major indexes on Monday as investors fled technology stocks. BlackRock Rick Rieder, the firm's chief investment officer for global fixed income, told CNBC he would “100 percent” buy stocks that fell on the Nasdaq. Reid explained his decision and how he will deploy downside protection.

Technology stocks underperformed on Monday as investors took profits from 2024 winners and looked for winners this year.

The tech-heavy Nasdaq Composite fell 0.38%. Large technology stocks popular with investors were broadly lower in midday trading on Monday. Palantir The best-performing stock in the S&P last year fell 3.4%, while Nvidia fell 2%, building on last week's losses. Nvidia fell nearly 6% during the period, while Palantir fell more than 15%.

Greg Bassuk, CEO of AXS Investments, said: “We believe this is a necessary part of the correction phase, and we have been well positioned in this correction since many stocks peaked in late November, early December. There may be further progress than many investors realize,” he said, adding that Friday's jobs report “reinforced” those concerns.

However, as investors turn to non-tech stocks such as Amgen, caterpillar and UnitedHealth.

This is not to say that these industries will become market leaders anytime soon, or at all. Sector rotation is a common phenomenon in the market as investors secure returns and look for the next stock with upside potential. The backdrop of rising interest rates has put more pressure on growth technology stocks than the value stocks that typically make up the Dow.

Furthermore, judging by the latest earnings report, the AI ​​craze isn't over yet. TSMC and Foxconn, whose transactions are Hon Hai Precision Industry. Both companies' revenue grew significantly due to high demand for AI-related products.

Technology and artificial intelligence are unlikely to rotate in the long term. But people in the field cannot be ignored.

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