Tech Sector Shows Mixed Performance Amid Market Fluctuations and Deal Activity

Sector Update: Tech Stocks Mixed Late Afternoon

Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) decreasing 0.3% and the SPDR S&P Semiconductor ETF (XSD) rising 1.7%. The Philadelphia Semiconductor index gained 0.5%. In corporate news, Eventbrite (EB) shares jumped nearly 23% after the company partnered with TikTok to let creators promote events and sell tickets using its links inside the social media app. Lucas GC (LGCL) popped 4% after it said Tuesday it has been granted a new patent in China for its AI-based computer-aided persuasion system. Shopify (SHOP) seems well placed to continue capturing e-commerce market share under its new chief executive and is likely poised for "solid" revenue growth, BofA Securities said Tuesday. The investment firm upgraded its rating on Shopify to buy from neutral and raised its price objective to $82 from $78. Shopify shares surged 8.7%. The US Federal Trade Commission is asking Amazon.com (AMZN) for details on a deal to hire senior executives from artificial intelligence company Adept, Reuters reported Tuesday. Amazon shares were rising 0.2%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sector Update: Tech Stocks Mixed Tuesday Afternoon

Tech stocks were mixed in Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) shedding 0.8% and the SPDR S&P Semiconductor ETF (XSD) adding 1%. The Philadelphia Semiconductor index decreased 0.3%. In corporate news, Shopify (SHOP) seems well placed to continue capturing e-commerce market share under its new chief executive and is likely poised for "solid" revenue growth, BofA Securities said Tuesday. The investment firm upgraded its rating on Shopify to buy from neutral and raised its price objective to $82 from $78. Shopify shares jumped 7.4%. The US Federal Trade Commission is asking Amazon.com (AMZN) for details on a deal to hire senior executives from artificial intelligence company Adept, Reuters reported Tuesday. Amazon shares were rising 0.2%. UK regulators said Tuesday they're launching a preliminary investigation into Microsoft's (MSFT) licensing deal with AI startup Inflection. Microsoft shares fell 1.5%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sector Update: Tech Stocks Rise in Late Afternoon

Tech stocks rose late Monday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) climbing 1%. The Philadelphia Semiconductor index fell 0.1%, erasing earlier gains. In corporate news, Salesforce (CRM) eliminated 300 jobs this month to simplify operations, Bloomberg reported. Salesforce shares shed 0.7%. HP (HPQ) shares gained 1.2%. The company launched an artificial intelligence personal computer and the first integration of a trust framework into an AI model development platform. Alphabet (GOOG) is in talks to buy cybersecurity firm Wiz for $23 billion, news outlets reported Sunday. Alphabet shares added 0.6%. Apple (AAPL) maintained its second position behind Samsung in the global smartphone market in the June quarter as worldwide shipments advanced from a year earlier, according to International Data. Apple shares rose 1.4%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tech Down Slightly on Sector Rotation - Tech Roundup

Shares of technology companies fell slightly as traders rotated out of the 2024 leaders into laggards such as industrial and materials sectors that have more to gain from a rate cut in the coming months. The Roundhill Magnificient Seven exchange-traded fund, which tracks the seven largest tech companies, those responsible for the majority of the S&P 500 gains for the year to date, is down about 3% in the last five sessions, even as the Russell 2000 index of small caps has risen by 11%. U.K. antitrust officials are weighing whether Microsoft's partnership with Inflection AI and the hiring of former employees poses a threat to competition, the latest probe into the tech company's ties with artificial-intelligence startups amid heightened scrutiny on both sides of the Atlantic. Match Group shares rose after activist investor, Starboard Value purchased a stake in the owner of Tinder. Elon Musk has said he plans to commit around $45 million a month to a new super political-action committee backing former President Donald Trump's presidential run.

Tech Advances Amid Deal Activity - Tech Roundup

Shares of technology rose slightly amid deal activity. Google parent Alphabet reportedly neared a deal to buy Israeli cloud cybersecurity concern Wiz for $23 billion. An emerging theory among Wall Street strategists holds that Apple's artificial-intelligence push will hasten users to upgrade their iPhones and iPads to avail of the AI technology, said J.D. Joyce, president of Houston money manager Joyce Wealth Management. There's also a political spin to stock trading Monday, as the shocking assassination attempt was seen as changing the calculus in the presidential election campaigns. "Maybe this boosts chances of a Republican win and that might result in lower regulations, lower taxes and the things that could be perceived as more business friendly," said Joyce. For a multinational corporation like Apple, investors might be thinking: "What if corporate tax rates don't go up, what if corporate tax rates actually go down?" said Joyce. The Roundhill Magnificent Seven exchange-traded fund, which tracks the seven largest mega-cap stocks, rose about 0.5% as a 2024 market trend reversed itself. For much of the year, the Magnificent Seven rallied while small-cap and other economically cyclical stocks languished. Now, the reverse is true. For the month to date, the returns on the small-cap Russell 2000 are more than double that of the broad S&P 500, noted Joyce, the Houston money manager. Still, the AI boom will mean that investors remain interested in the so-called Magnificent Seven stocks even if small-cap stocks' performance also improves.