The Nasdaq Composite slid 0.84% on Monday, weighed down by a broad decline in technology shares. Major names including Apple, Meta, and Oracle each fell more than 1%, extending the recent pressure across the sector.

Nvidia, often seen as the backbone of today’s artificial intelligence boom, performed even worse, dropping nearly 2%. Back in October, CEO Jensen Huang revealed that the chipmaker had “half a trillion dollars” in business lined up for 2025 and 2026. As the company prepares to report its third-quarter earnings on Wednesday, investors are eagerly scrutinizing Huang’s remarks, looking for signs that Nvidia expects its rapid growth to continue into 2026.

But expectations also carry risks. For a company as central to AI development as Nvidia — with OpenAI considered the other major force — even a slight miss on guidance could spark an outsized market reaction.

“If the company offers anything that resembles cautious guidance, or hints at softer demand for its chips, markets are likely to react negatively,” said Ross Mayfield, investment strategist at Baird.

Despite the recent pullback in tech driven by valuation concerns and heavy spending requirements, some analysts still expect markets to regain momentum before the year ends. Michael Graham of Canaccord Genuity wrote Monday that while bullish and bearish signals remain balanced, he still sees a strong chance of a year-end rally.

HSBC’s chief multi-asset strategist Max Kettner echoed this view, saying the bank believes “the probability of a melt-up into year-end — particularly in equities — is far higher” than the likelihood of an AI bubble bursting.

If these predictions play out, investors may find themselves celebrating more than just the holidays — leaving any worries about AI risks for 2026.

What to watch today

U.S. markets slipped on Monday. Tech stocks extended their losses, although Alphabet managed to buck the broader decline after news that Berkshire Hathaway had taken a position in the company. In Europe, the Stoxx 600 also retreated, dropping 0.54%.

Nvidia’s enormous order pipeline. Jensen Huang’s comment about $500 billion in combined orders for 2025 and 2026 has fueled speculation that the company expects exceptionally strong sales in 2026. Analysts say the remark likely reflects internal confidence about long-term demand.

Uncertainty around a December rate cut. On Monday, Federal Reserve Governor Christopher Waller said he is paying close attention to labor market softness, while Vice Chair Philip Jefferson emphasized a “need to proceed slowly.” The split tone leaves investors unsure of what the Fed may do next.

India expands energy ties with the U.S. New Delhi plans to source nearly 10% of its liquified petroleum gas imports from the United States, Indian petroleum minister Hardeep Singh Puri announced Monday. The move strengthens strategic ties between the two countries.

Bitcoin’s slump raises concerns. The cryptocurrency has been trending downward, and one analyst told CNBC that bitcoin’s price direction is often a leading signal for U.S. equities. Others, however, believe the digital asset still has near-term catalysts that could support it.

And finally…

Switzerland’s new trade agreement with the United States has sparked debate at home. Although the deal marks a diplomatic success following Switzerland’s efforts to strengthen ties with Washington, critics voiced opposition over the weekend. The Greens labeled the agreement a “surrender,” with party leader Lisa Mazzone reportedly accusing Swiss leaders of yielding to Donald Trump’s agenda. She warned that consumers and farmers in Switzerland may ultimately bear the cost of the concessions made.