Mega-Caps Tumble as Wall Street Braces for Economic Insights

Wall Street turned downward on Monday, led by declines in mega-cap stocks as investors prepared for a week filled with major economic data and earnings reports. Notable losses were seen in Tesla and Nvidia, amid concerns over U.S.-China trade tensions and the impact of recent tariffs on future earnings.

Wall Street experienced a downturn on Monday, primarily driven by falling mega-cap stocks as investors prepared for a crucial week of economic data and corporate earnings. The tech-focused Nasdaq led the losses, with Tesla and Nvidia sharing a significant portion of the decline.

Concerns mounted as a report emerged about Huawei Technologies in China, which is planning to test its AI processor with ambitions to replace some of Nvidia's products. Meanwhile, key industry players like Apple and Meta Platforms are set to disclose their earnings later this week.

Economists and investors are particularly focused on Trump's new tariffs and their possible impact on corporate forecasts. Despite prior gains attributed to a softening stance between the U.S. and China, market volatility has persisted, leaving stakeholders cautious about the prospect of recession risks.

(With inputs from agencies.)