The tech sector faced a turbulent day on Wednesday as Palantir continued to slide after a significant drop on Tuesday. The Nasdaq Composite Index fell by 0.4%, following a 0.1% decrease the previous day, ending a three-session winning streak.
Among the Magnificent Seven tech stocks, only Meta Platforms saw a rise in early trading, while Tesla, Nvidia, Alphabet, Amazon, Microsoft, and Apple all experienced declines. Intel also took a hit, with its stock dropping by 2.4% after lowering its second-quarter revenue guidance due to the Department of Commerce’s decision to revoke export licenses to Huawei.
Despite the overall negative trend, there were some positive earnings reports in the tech sector. Arista Networks saw a 6.4% increase after issuing better-than-expected revenue guidance and authorizing share buybacks. Reddit stock rose by 2% following a strong first-quarter performance.
On the other hand, some companies faced negative reactions post-earnings, with Twilio, ZoomInfo, and Astera Labs experiencing stock declines. President Joe Biden announced a $3.3 billion investment by Microsoft to build a new artificial-intelligence data center in Wisconsin, replacing a failed project by Foxconn.
In global expansion news, Amazon is set to enter the European 5G market through a deal with Telefónica Germany. The German subsidiary will move one million customers to Amazon Web Services cloud later this month.
Overall, the tech sector’s momentum was mixed, with some stocks rising on positive earnings while others faced challenges post-earnings. The market remains volatile as investors navigate through various factors impacting tech companies.