The S&P 500 (^GSPC 0.26%) fell 0.26% to 7,386.65, the Nasdaq Composite (^IXIC 0.97%) slid 0.97% to 25,678.82 in a renewed tech and chip sell‑off, while the Dow Jones Industrial Average (^DJI +0.17%) edged up 0.17% to 50,872.11 after a late rebound from session lows.
Market movers
Semiconductor bellwethers, including Broadcom and Micron, tumbled dramatically this morning before paring losses in afternoon trading. Advanced Micro Devices and Intel finished the day in the red. Microsoft sank despite expanding its partnership with KPMG.
Apple extended yesterday’s losses, falling almost 4% as investors questioned its artificial intelligence (AI) capabilities. Quantum stocks, such as Rigetti Computing, tumbled as investors reassessed their risk exposure. J.M. Smucker soared more than 10% on positive earnings.
What this means for investors
In another volatile day of trading, investors reduced their exposure to high-performing tech stocks, weighing on the Nasdaq. There was no single driver for today’s downward action, which likely comes from a combination of factors. These include profit-taking, de-risking ahead of tomorrow’s key CPI data, concerns about a re-escalation in the U.S.-Iran, and repositioning in advance of SpaceX’s mega-IPO on Friday.
These dramatic price swings are enough to give investors whiplash, but there may be a silver lining in today’s price action. If investors are broadening into other sectors, it reduces some of the tech concentration fears and could take some of the sting out of any AI collapse. Maintaining a diversified portfolio is a good way to manage some of the mixed signals we’re seeing in the market right now.
Emma Newbery has positions in Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Broadcom, Intel, J.M. Smucker, Micron Technology, and Microsoft. The Motley Fool has a disclosure policy.
