Tech Stocks Are Sliding. Wall Street Is Selling the AI Trade.
Wall Street was selling technology stocks after analysts at TD Cowen said Microsoft cancelled leases with “at least two data private center operators.”
The Nasdaq Composite dropped 1% in Monday morning trading, while the S&P 500 was down 0.4%. The Dow, which is less exposed to the tech sector than the other major indexes, was up 31 points, or 0.1%.
The S&P 500’s tech sector was down 1.2%, followed by consumer discretionary with a decline of 0.9%. The communication services sector was down 0.5%. All three contain members of the Magnificent Seven group of megacap technology stocks. The Roundhill Magnificent Seven ETF, which offers exposure to the group, was down 1.2%.