The Dow Jones industrial index rose 0.1 percent, while the broad S&P 500 index and the tech-heavy Nasdaq composite index fell 0.5 and 1.2 percent, respectively.
Technology giant Apple rose 0.7 percent after today's announcement that it will make a major investment in the US and hire 20,000 new employees.
But software company Palantir is on thin ice and plummeted 10.5 percent. The stock has thus lost over 25 percent in the last five trading days, according to CNBC.
Meta, which owns Facebook and Instagram, among other things, fell 2.3 percent. The company has lost over 10 percent in the last five trading days, the longest decline since August.
AI investments worry
Software company Microsoft fell 1 percent, after financial firm Cowen released a report that increased fears that AI investments are about to slow down.
This week, news is expected in quarterly reports from home improvement retailers Home Depot and Lowe's, which will provide clues about the development of American consumption.
Even more crucial – regarding AI investments – is Wednesday evening's quarterly report from the index-heavy semiconductor company Nvidia.
The company's stock fell 3.1 percent on Monday.
Actors on the New York Stock Exchange were caught off guard earlier this year by the sudden realization of increased competition from Chinese AI companies.
"Very little room"
Anthony Saglimbene, strategist at Ameriprise, points out in an interview with Bloomberg that Nvidia's environment has become more unforgiving.
There is very little room for Nvidia to be allowed to disappoint analysts' earnings expectations this year, given its leadership position, elevated valuation, and the new development and new players in the industry that could threaten dominance over time.
Hedge funds' net exposure to the big tech companies known as "the magnificent seven" has now simultaneously fallen to the lowest level since April 2023.
On Friday, consumer statistics for January are expected, which will weigh heavily in assessing the country's inflation level, and thus the timeline for a potential interest rate cut.
