The Nasdaq Composite fell more than 1% on Monday, with big technology stocks creating the biggest drag as investors worried about demand for technology supporting artificial intelligence while they waited for results from market heavyweight Nvidia.

Market Snapshot

The Dow Jones Industrial Average rose 33.19 points, or 0.08%, to 43,461.21, the S&P 500 lost 29.88 points, or 0.50%, to 5,983.25 and the Nasdaq lost 237.08 points, or 1.21%, to 19,286.93. Tesla Motors fell 2%.

Market Movers

Berkshire Hathaway's fourth-quarter operating earnings surged 71% to a record $14.5 billion on strength in the company's large insurance operations and higher investment income. Berkshire Hathaway's total holdings of cash and equivalents rose to a record $334 billion at year-end 2024 from $325 billion on Sept. 30. The company also didn't buy back any stock in the fourth quarter. The Class B shares rose about 4.1%, while the Class A stock gained 4%.

Apple rose 0.7%. The iPhone maker announced its "largest-ever spend commitment," saying it plans to spend and invest more than $500 billion in the U.S. over the next four years. The spending "will support a wide range of initiatives that focus on artificial intelligence, silicon engineering, and skills development for students and workers across the country," the company said in a statement. Apple said it plans to open a new advanced manufacturing facility in Houston to produce servers that support Apple Intelligence.

Palantir Technologies Inc. sank 10.5%, down for a fourth consecutive day as a result of concern that cuts to U.S. defense spending could affect the data analytics company's earnings.

Alibaba's U.S.-listed stock dropped 10.5%. The Chinese e-commerce company plans to invest more than $52 billion on artificial intelligence and cloud infrastructure over the next three years.

Shares of SUPER MICRO COMPUTER INC declined 8%. The maker of AI servers has until Tuesday to file its accounts for the year ended June 30, as well as for the fiscal first quarter, ended Sept. 30, or risk being delisted by the Nasdaq stock exchange.

Domino's Pizza fell 1.5% after the pizza chain reported its fourth-quarter earnings. Revenue was $1.44 billion, below Wall Street forecasts of $1.48 billion. Same-store sales rose 0.4% in the U.S. and 2.7% in international markets.

NVIDIA, the leading maker of artificial-intelligence chips, is scheduled to report fourth-quarter earnings after the closing bell Wednesday. Nvidia is the last of the Magnificent Seven tech stocka to issue its quarterly report this season.

Wedbush analyst Dan Ives, who described Nvidia as "the most important company for the tech sector and AI revolution," said he expected management to report better results than expected and raise its financial guidance, calming investors' nerves. Shares were down 3.1%.

Nike rose 5% to $80.28 after shares of the sports apparel and equipment company were upgraded to Buy from Hold by analysts at Jefferies. They raised their target for the stock price to $115 from $75.

Rivian Automotive, Inc. declined 7.8% to $11.96. Analysts at BofA Securities downgraded the stock to Underperform from Neutral and cut their price target on the electric-vehicle company to $10 from $13, citing a softer-than-expected outlook for 2025. Lucid, meanwhile, was downgraded to Sell from Neutral at Redburn Atlantic. Lucid fell 9.8%.

Market News

Constellation, Other Nuke-Related Stocks Sink as Analyst Says Microsoft Cancels Leases for AI Datacenters

Constellation Energy Corp -6%, Vistra Energy Corp. -5.1%, and Talen -1.3% in Monday's trading after TD Cowen analysts said Microsoft has begun canceling leases for "a couple hundred" MWs of U.S. datacenter capacity, which could reflect concerns about whether the company is building more AI computing than it will need.

The analysts said Microsoft's pullback reflects a shift by OpenAI toward alternative partners, including Oracle, and the overall effect is "net neutral for third-party data center demand."

Microsoft, in a statement, sought to play down reports of a pullback, saying that while it sometimes makes spending adjustments, it remains on track to spend more than $80B in the current fiscal year on infrastructure "as we continue to grow at a record pace to meet customer demand."

Hims Stock Tumbles 18% Following Q4 Report, 2025 Guidance

Hims & Hers Health Inc. stock tumbled 18% in post-market trading Monday after the company released its Q4 earnings report and 2025 guidance amid a possible FDA crackdown on its GLP-1 weight-loss products.

For Q4, Hims reported revenue shot up 95% year-over-year to $481M, beating the Street's estimate of $471M. GAAP EPS was in line with the consensus estimate of $0.11.

For 2025, revenue is expected in the range of $2.3B to $2.4B, which includes at least $725M from GLP-1 drugs such as compounded semaglutide and generic liraglutide. Analysts, on average, were expecting revenue of $2.09B.