Dominica Zarzycka | norphoto | Getty Images
Technology stocks popular with retail investors fell on Monday as investors took profits on 2024 winners and unloaded more speculative names in a rising interest rate environment.
Nvidia Decline 3%. Palantir Down 4%, while quantum computing wins It ignores computing It decreased by 23%. Last year's Nasdaq winner AppLovin About 3% were also sold.
Palantir, one day
The selling comes amid rising bond yields, with the 10-year Treasury yield hitting its highest level since late 2023 on Monday. Friday's strong jobs report cast doubt on whether the Federal Reserve will continue to cut interest rates at all this year.
“While technology stocks made big gains as interest rates fell last year, both Wall Street and Main Street have significant doubts about any further interest rate cuts by the Fed,” said Greg Bassock, CEO of AXS Investments. Friday's report “reinforced” those concerns.
Monday's moves also come on the heels of a losing week for several major names in technology and quantum computing, with Truist's Keith Lerner noting that the leaders are eventually falling into a corrective phase. The overall market uptrend “remains intact” but is undergoing a reset, the co-chief investment officer said.
“This is a necessary part of a corrective phase in our view and we are more likely to be in this correction than many investors realize since many stocks peaked in late November and early December,” Lerner said.
Other popular technology stocks also fell on Monday Tesla Another decline of about 1%. Semiconductor stocks Micron technology Decreased by 5%. The declines in the semiconductor sector came amid news of further restrictions imposed by the US government on exports of artificial intelligence chips.
Quantum computing stocks, which got a boost from Alphabet's positive chip announcement last year, also fell D wave 28% decline Ion Q Lost 10%. The sell-off followed a comment from Meta CEO Mark Zuckerberg who echoed Nvidia CEO Jensen Huang's comment last week suggesting it would be beneficial Quantum computers are decades away.
Righetti Computing, one day
