đź’» Tech Sector Gains Despite Geopolitical Tensions; Microsoft Rises, Marvell Pulls Back | Tech Sector Insights
The tech sector advanced despite increased geopolitical risk following U.S. airstrikes in the Middle East. Microsoft gained on the launch of a new on-device language model, while Apple’s AI M&A talks and Arista share sales drew attention. Marvell was a notable laggard following a new debt offering.
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Monday, June 23
VGT [+0.9%]
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) has experienced a price increase of 0.9% since Friday. Geopolitical tensions have escalated following recent U.S. airstrikes on Iranian nuclear facilities, raising concerns about potential disruptions in global oil supply through the Strait of Hormuz. This situation has led to heightened market volatility and risk aversion, impacting sentiment towards technology stocks. Positive economic data, including an unexpected rebound in existing home sales, may offer some support to market confidence but remains overshadowed by these geopolitical risks. Among the ETF's holdings, Microsoft (MSFT) contributed positively with an increase following the introduction of a new on-device language model. Arista Networks (ANET) saw its CTO sell a significant number of shares, while Apple (AAPL) is engaged in negotiations with EU regulators and is considering an acquisition to bolster its AI capabilities.