Callum Keown
Tech stocks were taking a hit early Wednesday as the sector's impressive rally lost some momentum amid broader market weakness.
Futures on the Nasdaq 100 fell 0.7% early Wednesday after the technology-heavy Nasdaq Composite index hit another record close Tuesday, its 12th of the year.
Nvidia stock, which has led the way in recent days, was 0.8% higher in premarket trading. Other chip stocks were under pressure, though, as Intel stock fell 0.7%, Advanced Micro Devices stock dropped 1.1%, Micron Technology stock was 1.2% down, and Qualcomm stock declined 0.7%.
Artificial-intelligence stocks, including Super Micro Computer and Palantir Technologies, were also falling ahead of the open. SoFI Technologies stock looked set to continue its recent slump, slipping 1.5% early Wednesday. The stock is 31% down so far in 2024, and has fallen 5.6% since the beginning of April.
The rest of the Magnificent Seven were also under pressure as Microsoft, Apple, Alphabet, Amazon.com, Meta Platforms, and Tesla all pointed lower.
Robinhood Markets stock jumped 2.1% after the online brokerage company said its board authorized a $1 billion share repurchase program. The company said share repurchases will start in the third quarter and last two-to-three years, depending on business and market conditions. It added that the buybacks were a sign that the business was maturing.
Salesforce stock was 0.6% lower ahead of the cloud-based software company's earnings after the bell. Shares of Okta, which is also due to report later Wednesday, edged 0.3% higher. Shares of C3.ai, another name reporting later, fell 1.5%.
Write to Callum Keown at callum.keown@barrons.com
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May 29, 2024 08:16 ET (12:16 GMT)
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