Happy Monday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟥 | US Stocks Sank on Monday. All three major indexes fell roughly 3%, and the S&P 500 posted its worst day since 2022 as the global market sell-off intensified.

• 📈 | One Notable Gainer: Kellanova’s stock jumped 16% after news broke that Mars Inc. is considering buying the snack maker in a deal that could be valued at around $30 billion.

• 📉 | One Notable Decliner: Shares of MicroStrategy fell 10% as crypto stocks plunged in response to bitcoin falling below 50,000 for the first time since February.

• ↪️ | Tomorrow's Trade: Ahead of the AI Curve. Scroll down for more.

Plus, AI-focused companies have the potential to deliver early investors amazing returns. Click here now to check out the latest news...

LAST FRIDAY’S POLL RESULTS

Are you bullish or bearish on Chipotle (CMG) over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish 🐂 

🟨⬜️⬜️⬜️⬜️⬜️ Bearish 🐻 

MARKET MOVERS

Nvidia, Apple, & Intel

NVDA (-6%) Nvidia’s stock fell after it reportedly delayed its next-generation artificial intelligence chips by at least three months (IBD)

AAPL (-5%) Shares of Apple dropped after Warren Buffett's Berkshire Hathaway disclosed over the weekend that it had sold nearly half of its Apple stock (WSJ)

PLTR (-3%) Palantir’s stock fell ahead of the company’s quarterly results, which were released after today’s closing bell (YF)

INTC (-6%) Intel’s stock continues to slide, losing more than 30% after releasing second-quarter results that missed top and bottom line estimates (Benzinga)

TSN (+2%) Tyson Foods saw its stock rise after it beat analyst estimates for its third-quarter profit and revenue and reversed a year-ago loss (MW)

TOGETHER WITH THE INVESTMENT JOURNAL

“Next Big AI Investment Found.”

AI-focused companies have the potential to deliver early investors amazing returns. Click here now to check out the latest news...

OVERHEARD ON THE STREET

CNBC: The 10-year Treasury yield dropped to its lowest level in more than a year as recession fears grow.

Bloomberg: Bond traders are piling into bets that the Federal Reserve will start easing monetary policy aggressively, potentially before their next meeting.

CNBC: Wall Street’s “fear gauge,” the VIX, rose to the highest since the pandemic market plunge in 2020.

WSJ: L’Oreal agreed to buy a minority stake in Swiss skincare company Galderma, valued at $1.85 billion, bolstering exposure to aesthetic injections.

NYP: Elon Musk revived his lawsuit against OpenAI, accusing its co-founders of a “Shakespearean betrayal.”

TOMORROW’S TRADE IDEA, TODAY

Ahead of the AI Curve

A League of Its Own

Amazon (AMZN), Google (GOOG), Microsoft (MSFT), and Meta (META) all recently reported earnings. There was a common theme in their reporting: increased capital expenditure. Combined, they spent $58.5 billion in Q2, up 64% from last year. That trend is expected to continue through 2025.

Unsurprisingly, the majority of these funds went towards building data centers. Nvidia’s (NVDA) systems power those facilities, putting the chip maker in a league of its own.

Some Roadblocks

As these tech giants pour resources into AI, they’ve all turned to Nvidia to help them in the process. But they aren’t seeing the payoff of their AI investments yet.

Each of the four companies saw their revenue growth slow from Q1 numbers. Amazon’s cloud business was its only arm to beat revenue expectations, and its stock fell 7% in after-hours trading following its reporting.

Apple’s iPhone revenue fell 1% year-over-year, and the phone maker just confirmed that not all of the functions of its Apple Intelligence technology will be included in its newest iPhone.

Exploding Revenue

Meanwhile, analysts are predicting that Nvidia will hit $25 billion in data center revenue when it reports at the end of August. Just a year ago, this was what Nvidia’s total annual revenue looked like.

The chip maker's stock has fallen lately, down around 13% over the last month. But this year, it has already gained a whopping 118%.

TOGETHER WITH THE INVESTMENT JOURNAL

“Next Big AI Investment Found.”

AI-focused companies have the potential to deliver early investors amazing returns. Click here now to check out the latest news...

ON OUR RADAR

YF: Elon Musk said Warren Buffett is “clearly expecting a correction” after Berkshire sold nearly half of its Apple stock and billions of BofA stock.

Bloomberg: Elon Musk’s brain-computer company, Neuralink Corp., has successfully implanted its device into a second patient.

CNBC: CrowdStrike says it isn’t to blame for Delta’s flight cancellations after July outage, claiming the airline rejected on-site help during the outage.

AP: Japan’s benchmark stock index plunged 12.4% today, compounding a global market rout sparked by investor concerns over a U.S. economic recession.

AB: The crypto market experienced its most significant three-day sell-off in almost a year, with a staggering $510 billion wiped off total market capitalization.