💻 VGT Declines Amid Strong Labor Market Data and AI Export Restrictions | Tech Sector Insights
The Vanguard Information Technology ETF (VGT) has experienced a decline of 0.8% since Friday. This movement coincides with recent macroeconomic data revealing unexpected strength in the U.S. labor market, which added 256,000 jobs in December and saw unemployment drop to 4.1%.
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Monday, January 13
VGT [-0.8%]
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) has experienced a decline of 0.8% since Friday. This movement coincides with recent macroeconomic data revealing unexpected strength in the U.S. labor market, which added 256,000 jobs in December and saw unemployment drop to 4.1%. Such developments have raised concerns regarding potential obstacles to monetary easing by the Federal Reserve, contributing to rising bond yields and expectations for prolonged higher interest rates, adversely affecting technology stocks. Among VGT's holdings, Nvidia and Advanced Micro Devices faced significant declines due to new White House export restrictions on artificial intelligence chips, with Nvidia dropping notably during premarket trading. The S&P 500 Index has also declined, reflecting broader market sentiment that aligns with VGT's recent performance.