💻 Tech Stocks Slide as VGT Drops; Weak Jobs Data and AI Bubble Fears Weigh on Sector | Tech Sector Insights
(VGT) fell 1.2% Wednesday, pressured by renewed concerns over lofty tech valuations and softer U.S. employment data. Nvidia, Microsoft, and Salesforce led declines amid broader market weakness and mounting fears of an AI-driven correction across the tech sector.
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Thursday, November 6
VGT [-1.2%]
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) is currently down approximately 1.2%. This decline coincides with broader market concerns regarding high valuations in technology stocks, compounded by economic data suggesting potential challenges ahead. The ADP report indicates that U.S. private sector employment increased by only 42,000 jobs in October, raising doubts about future Federal Reserve rate cuts amid ongoing inflationary pressures. Major indices, including the Nasdaq, have also seen significant declines due to fears of an AI bubble and a correction within tech sectors. Notably, key holdings such as NVIDIA, Microsoft, and Salesforce have experienced marked declines, further influencing VGT's performance. Additionally, initial jobless claims data showed a higher-than-expected number, which typically results in heightened volatility for VGT, reflecting the economic health concerns prevalent in the tech sector. The S&P 500 Index has also declined, aligning with VGT's downward movement.