Tech Stocks Tumble as Semiconductor Rally Stalls Ahead of Key Earnings

Tech Down as Chip Stocks Slide; Microsoft Slips in Late Trading - Tech Roundup

Shares of technology companies fell ahead of earnings report from Microsoft. Microsoft tumbled after the bell despite reporting revenue ahead of analyst expectations. Chipmakers slid after Lattice Semiconductor forecast revenue growth short of Wall Street expectations, warning that demand from automakers and industrial customers remained weak. Nvidia, the leading semiconductor stock and an artificial-intelligence bellwether slid, and are now down 30% from their peak. The Nasdaq 100 index of mega-cap tech stocks was on the cusp of correction territory ahead of Microsoft's earnings. Mega-cap tech companies have led the stock market for much of the year-long bull market, largely because of the revenue potential of AI products. Investors are now eager to see that potential realized, strategists say. "The tech sector should find support in the coming weeks and resume its leadership," said strategists at money manager UBS Global Wealth Management's chief investment office. Advanced Micro Devices rose in late trading after the chip maker's AI chips drove earnings growth in the latest quarter. The state of Texas reached a $1.4 billion settlement with Facebook parent Meta Platforms over the company's since-discontinued use of facial-recognition technology. Payment-technology firm PayPal Holdings rallied posted upbeat growth in transaction-margin dollars for its June quarter, surprising investors on a key metric that gauges the company's ability to grow profitably. CrowdStrike shares dropped ahead of the opening bell as a report about potential legal action from Delta Air Lines caused another down leg in the cybersecurity company's shares, which are down by roughly 40% since an update caused outages for airlines, banks and other critical customers. Tesla recalled more than 1.8 million vehicles in the U.S. due to a software issue that could result in the hood fully opening and obstructing the driver's view. Booking.com shares fell after Spain's competition regulator fined the online travel agency about $447.1 million, saying the online travel company abused its dominant market position in the country over the last five years.

Tech Stocks Drop Ahead Of Key Earnings; Nvidia Falls, CrowdStrike Hits 8-Month Low: What's Driving Markets Tuesday? - Apple (NASDAQ:AAPL)

The Nasdaq 100 dropped 1.5%, with Nvidia plunging over 6%, impacting semiconductor stocks. Investor sentiment took a hit on Tuesday as caution prevailed ahead of significant market events, including key tech earnings reports and the Federal Open Market Committee meeting. The Nasdaq 100, heavily weighted with tech stocks, experienced the most significant decline among major U.S. indices, dropping 1.5%. Semiconductor stocks were particularly affected, with Nvidia Corp. NVDA plummeting over 6% to a two-month low, impacting the entire industry. Consequently, the iShares Semiconductor ETF SOXX fell nearly 3%, marking its sixth negative close in the last eight sessions. The S&P 500 also dipped 0.8%, primarily due to its heavy tech exposure, while the Dow Jones and Russell 2000 managed to avoid losses. Notably, the iShares Russell 2000 ETF IWM has outperformed tech stocks by 15% so far this month. Microsoft Corp. MSFT declined more than 1% ahead of its post-market earnings announcement, while Apple Inc. AAPL, Alphabet Inc. GOOGL, and Meta Platforms Inc. META experienced smaller losses in anticipation of their reports later in the week. Crowdstrike Holdings Inc. CRWD was the worst-performing tech stock on Tuesday, plunging nearly 12% after Delta Air Lines announced it would seek compensation from the cybersecurity firm for last week's outage. Meanwhile, Treasury yields remained steady, gold edged up 0.3%, and the Japanese yen, tracked by the Invesco CurrencyShares Japanese Yen Trust FXY, gained 0.4% against the dollar in anticipation of a potential Bank of Japan rate hike. Bitcoin BTC/USD fell 1.5% to $65,812. Tuesday's Performance In Major US Indices, ETFs According to Benzinga Pro data: The SPDR S&P 500 ETF Trust SPY was 0.7% lower to $541.00. The SPDR Dow Jones Industrial Average DIA rose 0.3% to $406.60. The tech-heavy Invesco QQQ Trust (NASDAQ: QQQ) fell 1.5% to $457.06. The iShares Russell 2000 ETF IWM rose 0.16% to $222.09. Sector-wise, the Energy Select Sector SPDR Fund XLE outperformed, up 1.2%, while the Technology Select Sector SPDR Fund XLK lagged, down 2.4%. Tuesday's Stock Movers Stocks moving on earnings were: F5, Inc. FFIV, up over 11%. Hologic Inc. HOLX, up 2.7% Woodward Inc. WWD, down 18%. Chesapeake Energy Corp. CHK, down 0.6%. Amkor Technology Inc. AMKR, down 18%. Crane Company CR, down 4%. Lattice Semiconductor Corporation LSCC, down 8%. Procter & Gamble Company PG, down 5.6%. Merck & Company Inc. MRK, down 10%. Pfizer Inc. PFE, down 0.5%. S&P Global Inc. SP, down 0.7%. Illinois Tool Works Inc. ITW, down 0.5%, PayPal Holdings, Inc. PYPL, up 7.4%. Ecolab Inc. ECL, down 8.4%. Phillips 66 PSX, up 5.2%. American Electric Power Company, Inc. AEP, flat. Gartner Inc. IT, up 6.7%. Archer-Daniels-Midland Company ADM, down 0.4% JetBlue Airways Corporation JBLU, up 17%. LGI Homes, Inc. LGIH, up 8%. Logitech International S.A. LOGI, up 0.6%. Restaurant Brands International Inc. QSR, down 0.5% SoFi Technologies, Inc. SOFI down 1.9%. Companies reporting earnings after the close include: Advanced Micro Devices, Inc. AMD Arista Networks, Inc. ANET Caesars Entertainment, Inc. CZR DoubleVerify Holdings, Inc. DV Electronic Arts Inc. EA First Solar, Inc. FSLR Freshworks Inc. FRSH Live Nation Entertainment, Inc. LYV Match Group, Inc. MTCH Microsoft Mondelez International, Inc. MDLZ Pinterest, Inc. PINS Skyworks Solutions, Inc. SWKS Starbucks Corporation SBUX Qorvo, Inc. QRVO. Read Next: Job Openings Hold Steady In June Ahead Of Crucial July Labor Market Data: Why This Analyst Expects Robust Payrolls Image created using artificial intelligence via Midjourney. Market News and Data brought to you by Benzinga APIs

Dell, Nvidia, AMD Stocks Tumble As Semiconductor Rally Stalls - Advanced Micro Devices (NASDAQ:AMD), Dell Technologies (NYSE:DELL)

Earnings season has done little to quell concerns about the tech market, but could change with upcoming reports from $MSFT and $AMD For the first half of 2024, computer and semiconductor names like Dell Technologies Inc DELL, NVIDIA Corp AMD and Advanced Micro Devices Inc AMD could no wrong. Hype around artificial intelligence and heightened demand for chips helped push share prices higher, creating what some experts have called a bubble. But so far, in the second half of the year, the run in technology has faltered. The Invesco QQQ Trust Series QQQ, a fund that tracks the NASDAQ 100, is down more than 5% throughout the last month. In the last month, Dell's stock is down 25%, Nvidia's more than 15%, while AMD is down around 13%. See Also: AMD Q2 Report Looms As Nvidia Rival Struggles With Key Headwinds: Will 'Overcorrected' Stock Vindicate Itself? Earnings reports from companies like Tesla Inc TSLA and Alphabet Inc GOOG GOOGL drove their respective stocks lower, creating more uncertainty among investors in the tech community. Why Are Semis Trading Lower? There are a number of potential reasons why the semiconductor industry has struggled throughout the last few weeks. The first six months of the year were so strong for the group of stocks that it's reasonable to expect them to pull back and come down to earth at some point. After all, the iShares Semiconductor ETF SOXX, which tracks semi-names like NVIDIA and AMD, is still up around 20% YTD, despite a 10% drawdown in the last month. And while there is still a substantial amount of hype around the AI opportunity, some analysts have begun expressing doubts about how long it will take for companies to realize the benefits of their expensive investments in the developing technology. Upcoming earnings this week from names like Microsoft Corp MSFT, Meta Platforms META and other tech companies actively investing in AI could shed more light on how much return they are seeing now. AMD is also set to report earnings Tuesday after the bell, having fallen more than 35% from its high in March. Read Next: Stock Of The Day: Microsoft's Upcoming Earnings Could Signal Market Shift At Key Resistance Photo: Shutterstock Market News and Data brought to you by Benzinga APIs