Quoted from The Wall Street Journal:
Traders pulled away from Apple and Nvidia
Sept. 8, 2023 4:35 pm ET
The S&P 500 ticked lower for the week, weighed down by losses in tech heavyweights
.Apple shares ended the week down 6% after China ordered central-government officials to stop using iPhones. Shares of Nvidia, the graphics-chip maker at the heart of the AI boom, dropped 6.1% for the week. Its stock remains up more than 200% this year.
Both tech stocks have a major influence on the broad U.S. stock index. At the end of August, Apple and Nvidia were responsible for almost 30% of the S&P 500’s 2023 total return, including dividends, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
The S&P 500 fell 1.3% for the week while the tech-heavy Nasdaq Composite declined 1.9%. The Dow Jones Industrial Average, which includes Apple but not Nvidia, slipped 0.7%.
Index performanceSource: FactSet
Sept. 6Sept. 8-2.75-2.50-2.25-2.00-1.75-1.50-1.25-1.00-0.75-0.50-0.250%Dow industrialsS&P 500Nasdaq Composite
Investors said they were questioning the rally in tech shares that has lifted the market higher this year. The technology sector pulled back 2.3% for the week, trimming its year-to-date gains to 41%.
“You’re finally starting to see a more intelligent look at artificial intelligence,” said Dan Genter, chief executive and chief investment officer at Genter Capital Management.
While companies including Microsoft and Nvidia are likely to benefit in the near-term from advances in AI, he said, “there’s a lot of other companies that the true benefit to earnings is very suspect.”
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