U.S. technology shares reversed course this week, giving up all the gains they made the previous week. Profit-taking and concerns about AI competition from China and whether AI investment returns will meet expectations hit the semiconductor sector, pushing it into bear territory.
The sell-off in tech stocks came despite cooling inflation at both the retail and wholesale levels, which eased fears of an interest rate hike by the nation’s central bank.
For the week, the Dow Jones Industrial Average edged 0.93 percent lower, closing at 52,146. The S&P 500 dropped 1.55 percent to 7,457, near its weekly low touched on July 17. The Nasdaq Composite fared far worse, down 2.90 percent. The Russell 2000 fell 0.52 percent. …