đź’» VGT Slips Despite Strong U.S. GDP; Microsoft, Oracle, Qualcomm Weigh on VGT | Tech Sector Insights
(VGT) fell 0.4% as the S&P 500 also declined, despite Q2 GDP growth of 3.8% and lower jobless claims signaling economic strength. Microsoft’s service halt to an Israeli defense unit, Oracle’s Sell rating and bond plans, and a Qualcomm downgrade offset solid results from Accenture.
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Thursday, September 25
VGT [-0.4%]
Vanguard Information Technology ETF (VGT)
The Vanguard Information Technology ETF (VGT) has experienced a decline of 0.4% since Wednesday. This movement coincides with broader market trends, as the S&P 500 Index has also dropped by 0.73%. Macroeconomic indicators reflect stronger-than-expected U.S. GDP growth of 3.8% for the second quarter, alongside a decrease in initial jobless claims to 218,000, suggesting a robust labor market. Despite this positive economic backdrop, VGT reacted minimally to these developments. Notably, key holdings within VGT contributed to its performance decline, with Microsoft halting services to an Israeli defense unit over privacy concerns and Oracle facing pressure following a Sell rating and bond offering announcement. Additionally, Qualcomm's new processor announcement was met with a stock downgrade, while Accenture reported strong financial results but saw a share price decline.