Software Sector Drag on Nasdaq
Weakness in software stocks is limiting gains in the broader market
Too little corroboration in the last 3 days to call a trend (12 articles). Watching for it to gain traction. It's spreading across SPX & NDX — a theme crossing asset classes.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"However, weakness in chipmaker and AI-infrastructure stocks continued today, limiting gains in the Nasdaq 100. Chipmakers and AI-infrastructure stocks are sliding for a second day today, weighing on the broader market."
"Nasdaq lagged as the Momentum maelstrom played out (worst day for L/S hedgies in years) amid AI angst"
"Software stocks such as Atlassian, Dow component Salesforce, Adobe and Zscaler were down sharply following earnings reports from a few companies in the sector. AppLovin dropped 19.3% as the marketing platform missed Wall Street estimates for quarterly revenue, while Datadog lost 14.7% after the cloud security firm said it expects revenue growth to slow in the third quarter."
"Software stocks sold-off overnight as a result of the rally in chip names. Shares of Salesforce, Adobe, Accenture, Cognizant, all fell between 4% to 6% on Thursday."
"Stock indexes gave up early gains today and are trading mixed, with the Nasdaq 100 falling to a 2.5-month low. The weakness in chipmakers is weighing on the broader market as investors rotate out of semiconductor and AI-infrastructure stocks and into beaten-down sectors, such as software."
"Losses in a handful of heavyweight technology companies kept a lid on broader market gains. Micron Technology tumbled 6%, while Broadcom declined 2.3%. Their sharp falls weighed heavily on the Nasdaq because of their large market values."
"The Nasdaq rose 0.1% and was kept in check by sharp losses from several big stocks. Micron Technology fell 4.9% and Broadcom fell 2.1%. Both companies have large market values that tend to weigh more heavily on the market. They were big reasons for the technology-heavy Nasdaq lagging other indexes."
"Wall Street, meanwhile, is sinking with sharp drops for two of its most influential stocks, Alphabet and Tesla. The Nasdaq composite was 1.6% lower."
"Sharp drops for two of Wall Street's most influential companies, Alphabet and Tesla, yanked the U.S. stock market lower. The Nasdaq composite was 2.2% lower."
"The Nasdaq led a decline on Wall Street Wednesday, affected by mixed performance in tech stocks... Uneven performances among semiconductor and software giants compounded market uncertainties"