💻 Tech ETF Slips as Hot PPI Data, Apple & Salesforce Losses Pressure Sector | Tech Sector Insights
VGT slipped 0.4% after hotter-than-expected PPI data and falling jobless claims fueled rate concerns. Losses in AMD, Apple, Salesforce, Coherent, and Cisco weighed on performance, with company-specific news amplifying sector weakness.
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Thursday, August 14
VGT [-0.4%]
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) has seen a decline of 0.4% since Wednesday. This movement coincides with a significant rise in the U.S. Producer Price Index (PPI) for July, which increased by 0.9%, surpassing expectations and marking the largest monthly gain since June 2022. Concurrently, initial jobless claims fell unexpectedly to 224,000, suggesting ongoing strength in the labor market. Within the ETF's holdings, notable contributors to its performance included AMD, Apple Inc., Salesforce Inc., Coherent Corp., and Cisco Systems, all of which experienced declines in share price. Apple is witnessing increased options activity related to its products, while Salesforce had its price target reduced by an analyst. Coherent is divesting its Aerospace and Defense business to reduce debt, and Cisco reported strong financial results but issued lower revenue guidance for FY26. Additionally, the iShares iBoxx High Yield Corporate Bond ETF (HYG) declined slightly, reflecting broader market sentiment that may also influence VGT's performance.