CNBC Daily Open: We could still close the year with a rally despite AI slump

Core Viewpoint - The Nasdaq Composite experienced a decline of 0.84% due to pressure on technology stocks, particularly with notable drops from Apple, Meta, and Oracle, each retreating over 1% [1] Group 1: Technology Sector Performance - Nvidia, a key player in artificial intelligence, saw a loss of nearly 2% and is expected to report its third-quarter earnings soon, with investors looking for indications of strong growth in 2026 based on CEO Jensen Huang's previous comments about having "half a trillion dollars" of business on the books for 2025 and 2026 [2][3] - Analysts express concerns that any disappointment in Nvidia's guidance or demand forecasts could lead to significant negative market reactions [3] Group 2: Market Outlook - Despite recent sell-offs in the tech sector due to high valuations and capital expenditure concerns, some analysts believe a year-end rally is still possible, citing a balance of bullish and bearish signals [4] - HSBC's chief multi-asset strategist indicated a higher probability of a "melt-up" in equities as the year ends, suggesting that if predictions hold true, investors could have reasons to celebrate during the festive season [5]