Tech Giants Drag Down US Stocks After Torrid Rally
The US stock market has taken a hit, with tech giants Apple, Advanced Micro Devices, and Tesla leading the decline. This downturn comes after a rally that has sparked concerns about sky-high valuations, particularly in the megacap sector.
Stock market volatility
The iPhone woes in China have deepened, with Apple’s sales taking a hit. Meanwhile, Advanced Micro Devices has hit a roadblock in selling an artificial-intelligence chip to China. Tesla, on the other hand, has extended its rout, with China shipments slumping.
iPhone sales decline
Bullish positioning in US technology stocks is at an all-time high, according to Citigroup’s Chris Montagu. This has raised concerns about a potential pullback in the market.
Tech stock performance
The US service sector has also cooled, despite orders and business activity picking up. This mixed economic data has led to caution in the market, with investors awaiting Jerome Powell’s testimony to Congress.
Service sector performance
The S&P 500 has dropped 1%, while the Nasdaq 100 has slipped almost twice as much. Tesla has extended its two-day selloff to 11%, while Apple has suffered its fifth straight loss. Nvidia Corp, on the other hand, has risen.
Stock market performance
Treasury 10-year yields have fallen six basis points to 4.15%. Bitcoin has slid after a record-setting run that topped $69,000. Gold has also hit an all-time high.
Bitcoin performance
As the market navigates this uncertainty, one thing is clear: the tech giants’ performance will be closely watched in the coming days.
Stock market outlook
