US Stocks End Lower as Tech Sell-Off Intensifies
US equity markets closed lower on Tuesday, dragged down by a broad sell-off in technology stocks, even as trade negotiations showed progress. Shares of Salesforce, Qualcomm, and Marvell were among the hardest hit.
US equity indexes ended lower on Tuesday, driven by a widespread sell-off in technology stocks, despite signs of progress in trade talks. Shares of Salesforce (CRM), Qualcomm (QCOM), and Marvell Technology (MRVL) all declined.
Possible Reasons
The sell-off in tech stocks came as investors grew concerned about persistent inflationary pressures and the potential for further interest rate hikes by the Federal Reserve, which could dampen valuations for high-growth companies. The positive trade headlines were not enough to offset these worries.
Context
Over the past week, tech stocks have traded in a narrow range as markets awaited monthly inflation data. The Nasdaq Composite has fallen about 5% over the past month, pressured by weak performance from companies like Salesforce, which recently cut its quarterly guidance.
Similar Moves in the Sector
The sell-off was not limited to the mentioned stocks; other major tech names such as Apple and Microsoft also declined, indicating broad risk aversion in the sector.
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