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Technology stocks struggled across the board Monday, including declines among Magnificent 7 firms and a big hit to quantum computing stocks.

The S&P 500 technology sector fell about 0.9%, and the tech-heavy Nasdaq Composite finished 0.4% lower. The decline follows broad market struggles on Friday after labor market data for December came in hotter than expected , leading investors to scale back their expectations for Federal Reserve rate cuts.

The Magnificent 7 were not spared, with Nvidia ( NVDA ) stock losing 2% and Apple ( AAPL ) and Meta Platforms ( META ) shares declining about 1%. The only member of the group in the green was Tesla ( TSLA ), with shares up 2%.

Nvidia's drop came even as the chipmaker announced a series of AI healthcare partnerships with Mayo Clinic, IQVIA Holdings ( IQV ), and Illumina ( ILMN ) on Monday, as the Biden administration proposed new rules on exporting AI chips. Nvidia called the new restrictions, meant to limit AI chip sales to certain countries, "misguided" in a blog post Monday.

Quantum Computing Stocks Fall

Shares of quantum computing companies continued to slide Monday after Meta CEO Mark Zuckerberg followed the lead of Nvidia CEO Jensen Huang with comments throwing cold water on the sector.

In a Friday appearance on "The Joe Rogan Experience," Zuckerberg said he believes quantum computing is "still quite a ways off from being a very useful paradigm." That followed comments from Huang last week that "very useful quantum computers" are still 15 to 30 years away.

Rigetti Computing ( RGTI ) shares plunged 32%, while D-Wave Quantum ( QBTS ) lost close to 34%, IonQ ( IONQ ) fell 14%, and Quantum Computing ( QUBT ) dropped 27%.

UPDATE—Jan. 13, 2025: This article has been updated to include additional information on proposed U.S. export rules and reflect more recent share price values.

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