Tech Sinks in First Week of August
ETF Central | Aug 08, 2023 10:52AM ET
The first half of 2023 brought many positive developments for investors, driven by outstanding reports from several tech titans. These results broadly exceeded anticipations, strengthening growth sectors – which enjoyed an explosive start to the year – and further intensifying expectations for potential earnings from the emerging AI domain.
Indeed, the Information Technology sector was the best performer within the S&P 500 until the end of July.
Unfortunately, however, the month of August has not gotten off to a good start. The first week proved a tough period for the tech behemoths, as evidenced by the freefall of the S&P Information technology index (-4.14%). Microsoft (NASDAQ:MSFT) shares lost 3.13% while Apple (NASDAQ:AAPL) stocks plunged 7.07%. Despite the tech giant posting higher-than-expected quarterly profits – partly due to robust demand for services – Apple’s revenue declined as customers curtailed spending.
Chipmakers did not fare any better. They also dragged down the tech sector with Qualcomm (NASDAQ:QCOM) Inc shedding 6.16% for the week, after the company reported weaker-than-expected quarterly revenue and guidance. Nvidia (NASDAQ:NVDA) Corporation was also hit by the trend reversal (down 4.43%).
Consequently, tech ETFs exhibited poor performance over the course of last week.
h2 Group Data: Information Technology/h2This content was originally published by our partners at ETF Central .
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.