FX.co ★ US Stocks Swing Lower on Tech Rotation

U.S. stock indices took a turn lower due to significant declines in the tech sector, illustrating renewed scrutiny over the valuations of chip producers and AI companies. The S&P 500 retreated 0.5% after hitting record highs earlier in the session, and the Nasdaq 100 fell by 1%, while the more defensive Dow Jones Industrial Average managed to stay above the flatline. Notably, chip producers and AI firms faced steep losses, with companies like Micron, Broadcom, Oracle, and Intuit tumbling between 4% and 8%. Nvidia experienced a 5% decline this week as the chipmaker downplayed its plans to invest in OpenAI. Likewise, AMD saw a 5% drop in this session, ahead of its earnings report scheduled post-market close. Concurrently, PayPal nosedived nearly 20% following the release of its fourth-quarter results and the announcement of a new CEO. Similarly, Disney saw a decline after announcing a change in its chief executive. Conversely, Palantir jumped 6% after surpassing expectations with this year's guidance. Additionally, Pfizer and Merck reported robust results, lifting their shares and contributing to a positive performance in the pharmaceutical sector.