💻 Tech sector dips as weak jobs data fuels Fed cut bets; Microsoft and Nvidia drag VGT lower | Tech Sector Insights
(VGT) slipped 0.1% as nonfarm payrolls grew by just 22,000 in August, raising expectations of a Fed rate cut. Microsoft hit an eight-week low, Nvidia faced fresh AI competition, and Broadcom’s strong results were overshadowed by macro concerns, weighing on tech valuations.
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Friday, September 5
VGT [-0.1%]
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) has seen a slight decline of 0.1% today, coinciding with broader market movements. The S&P 500 Index has also dropped, reflecting a general downturn in market sentiment. Recent labor market data revealed a significant slowdown, with nonfarm payrolls increasing by only 22,000 jobs in August against expectations of 75,000, while the unemployment rate rose to 4.3%. This has heightened anticipation for a potential Federal Reserve interest rate cut at their upcoming meeting. Among VGT's holdings, Microsoft and Nvidia have dropped significantly, with Microsoft hitting an eight-week low and Nvidia facing increased competition in the AI hardware sector. Additionally, Broadcom reported strong quarterly results but encountered mixed reactions from investors due to prevailing economic concerns affecting tech valuations.