Tech Sell-Off Takes QQQ To Correction Territory, Nvidia Sheds Over 5% For Week: Analyst Says 'Just A White Knuckle Moment In A Multi-year Bull Run'
Portfolio Pulse from Shanthi Rexaline
The tech sector experienced a significant sell-off in the week ending Aug. 2, with major ETFs and stocks like Nvidia, Intel, and AMD seeing notable declines. Mixed earnings reports, geopolitical concerns, and macroeconomic factors contributed to the downturn. Despite the short-term volatility, analysts like Daniel Ives remain optimistic about the long-term prospects of tech stocks, particularly those involved in AI technology.

August 04, 2024 | 8:35 pm
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NEGATIVE IMPACT
AMD saw a 5.35% decline despite a strong earnings report, as broader tech sector concerns weighed on the stock.
AMD's strong earnings were overshadowed by broader market concerns, leading to a decline.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Arm Holdings saw a 23.86% decline, partly due to quarterly earnings and broader market sell-off.
Arm Holdings' decline was driven by its earnings report and the broader market sell-off.
CONFIDENCE 80
IMPORTANCE 55
RELEVANCE 60
NEGATIVE IMPACT
Intel saw a massive 31.48% decline following an earnings miss and broader market sell-off.
Intel's earnings miss and the broader market sell-off led to a significant decline in its stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 95
NEGATIVE IMPACT
Nvidia declined over 5% amid reports of a potential FTC probe and broader tech sector sell-off.
Nvidia faced significant selling pressure due to regulatory concerns and overall market conditions.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The T-Rex 2X Long NVIDIA Daily Target ETF declined 12.21% amid Nvidia's regulatory concerns and broader market sell-off.
NVDX, which focuses on Nvidia, was impacted by Nvidia's regulatory concerns and the broader market sell-off.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 65
NEGATIVE IMPACT
The Invesco QQQ Trust declined 3.07% as the tech sector entered correction territory.
QQQ, which tracks major tech stocks, declined due to the overall tech sector sell-off.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
The Direxion Daily Semiconductor Bull 3X Shares plummeted 30.01% amid the tech sector sell-off.
SOXL, a leveraged ETF, saw a significant decline due to the broader tech sector sell-off.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
The iShares Semiconductor ETF declined 9.84% amid broader tech sector concerns.
SOXX, which focuses on semiconductor stocks, was heavily impacted by the tech sector sell-off.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
The Vanguard Information Technology Index Fund ETF Shares declined 4.90% amid the tech sector sell-off.
VGT, which tracks the tech sector, declined due to the overall market conditions.
CONFIDENCE 85
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
The Technology Select Sector SPDR Fund (XLK) declined over 5% due to mixed tech earnings and macroeconomic concerns.
XLK's performance is closely tied to the tech sector, which faced significant headwinds this week.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Meta Platforms reported robust earnings, but the stock was largely ignored due to broader market sell-off.
Meta's earnings were strong, but the broader market conditions led to a neutral impact on the stock.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Apple saw a slight increase of 0.87%, bucking the broader tech sector trend.
Apple's slight increase indicates resilience amid the broader tech sector sell-off.
CONFIDENCE 75
IMPORTANCE 45
RELEVANCE 50
POSITIVE IMPACT
Palantir Technologies is set to report earnings, potentially offering insights into the strength of the AI wave.
Palantir's upcoming earnings report could provide valuable insights into the AI sector's strength.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 55