Tech Stocks Correct, Investors Rotate to Energy and Industrials

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Tech Stocks Correct, Investors Rotate to Energy and Industrials
TECH STOCKSMARKET ROTATIONCES 2025

As tech stocks corrected after strong gains in 2024, investors rotated into energy and industrial sectors. Nvidia CEO Jensen Huang delivered a keynote address at CES 2025, highlighting advancements in AI. Meanwhile, the proposed deal between Nippon Steel and U.S. Steel has been blocked by the White House, and India's retail inflation eased to 4.81% in December 2024.

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Nvidia CEO Jensen Huang delivered a keynote address at the Consumer Electronics Show 2025 in Las Vegas, Nevada, U.S., on January 6, 2025. This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Meanwhile, the deal between Nippon Steel and U.S.

Steel, which was planned for $55 per share and valued at over $14 billion, has been blocked by the White House earlier this month, sources told CNBC's David Faber. The offer would be in the high $30s a share. According to the Ministry of Statistics and Programme Implementation, India's retail inflation eased to 4.81% in December 2024. The reading is lower than the 5.30% forecast by a Reuters poll of analysts and marks the second consecutive month of declining price growth. This softer inflation reading provides the Reserve Bank of India (RBI) with room to cut interest rates. Platforms CEO Mark Zuckerberg stated on a Friday podcast by Joe Rogan that the technology is 'quite a ways off from being a very useful paradigm.' These comments reinforce recent commentary from industry experts. Rick Rieder, the chief investment officer of global fixed income at BlackRock, told CNBC he would 'one hundred percent' buy the Nasdaq dip. Tech stocks underperformed on Monday as investors took profit on the victors of 2024 and looked for this year's winner. Nvidia and Palantir, which both significantly outperformed the S&P last year โ€” Nvidia slid 3.4%, while Palantir lost more than 15%. 'That's a necessary part of a corrective phase in our view and we are likely further along in this correction than many investors recognize since many stocks peaked in late November, early December,' said AXS Investments CEO Greg Bassuk, adding that Friday's jobs report 'cemented' those concerns. However, the S&P 500 inched up 0.16% and the Dow Jones Industrial Index climbed 0.86% as investors rotated into non-tech shares such as energy and industrials. That's not to say those sectors will be taking the mantle of market leader anytime soon โ€” or at all. Sectoral rotation is a common phenomenon in markets, as investors secure their returns and look for the next stocks with upside potential. And although a long-term rotation out of tech and AI isn't likely, one within the field cannot be dismissed. Get the CNBC Daily Open report in your inbox every morning and keep up to date with the markets wherever you are

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