By Callum Keown
Tech stocks were struggling for direction early Tuesday after a sharp selloff Monday.
Futures on the Nasdaq 100 were edging up ahead of the open, after the technology-heavy Nasdaq Composite Index tumbled 1.8% in the previous session as bond yields rose following strong retail sales data.
The so-called Magnificent 7 stocks were mixed, with Tesla the group's worst performer falling 2.6% in premarket trading. Meta Platforms, Alphabet, Amazon, and Apple all edged lower, while Nvidia and Microsoft both eked out early gains.
Microsoft announced plans to invest $1.5 billion in United Arab Emirates-based artificial intelligence company G42. The commercial partnership is backed by assurances to the U.S. and UAE governments to ensure the responsible development and employment of AI, the company said. G42 made a secret pact with the U.S. to divest from China before the deal, Bloomberg reported Tuesday.
Advanced Micro Devices, up 0.6%, and Intel, rising 0.3%, were among the better performing tech stocks early in the day. Others found it tougher going -- Palantir Technologies, was 0.8% down after Monday's 3.4% slump. The software company's shares were the third-most active in premarket trading behind Tesla and Nvidia. SoFi Technologies was 0.8% down after falling 2.9% in the previous session.
Swedish telecom equipment maker Ericsson was a standout performer in the sector after it beat earnings expectations and said it expects sales to stabilize in the second half of 2024. The company's American depositary receipts (ADRs) were 8.4% higher in premarket trading. Its Finnish rival Nokia's ADRs were up 2.1%.
Write to Callum Keown at callum.keown@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 16, 2024 08:02 ET (12:02 GMT)
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