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Semiconductor industry

U.S. Technology Sector Suffers Amid Intel's Weakness

Strategic Insights

— 1 min read

The U.S. technology sector experienced another day of losses on Monday, driven in part by Intel's downward revision of its first-quarter sales outlook. The downward revision, which moved the company's sales expectations to the lower end of its previous range, sent Intel shares plummeting over 4%. This led to a broader sell-off in the technology sector, with the tech-heavy Nasdaq Composite Index declining by 1.9% to close at 2,088.78.

Key Takeaways:

  • The Dow Jones Industrial Average fell 66.07 points, or 0.62 percent, to close at 10,529.48 on trading volume of 1.55 billion shares.
  • The tech-heavy Nasdaq Composite Index was down 38.85 points, or 1.9 percent, to close at 2,088.78 on a volume of over 2 billion shares.
  • Intel shares declined by over 4% to below $28 a share, contributing to the broader sell-off in the technology sector.
  • The Standard and Poor's 500-stock index lost 9.66 points, or 0.84 percent, to 1,147.20.
  • The losses were compounded by weakness in Eastman Kodak and General Electric.
  • Texas Instruments traded lower ahead of the expected update after close of market.

Statistics:

  • The Dow Jones Industrial Average closed at 10,529.48, a decline of 66.07 points.
  • The Nasdaq Composite Index closed at 2,088.78, a decline of 38.85 points.
  • Intel shares traded at below $28 a share, a decline of over 4%.
  • The Standard and Poor's 500-stock index closed at 1,147.20, a decline of 9.66 points.
  • The bond market saw an increase in the benchmark 10-year Treasury note price, up 19/32 at 101 26/32, yielding 3.77 percent.

Sources:

  • UPI, "U.S. technology sector suffers amid Intel's weakness"
  • Wall Street Journal, "Intel Cuts Sales Outlook, Worries Investors"
  • Bloomberg, "U.S. Stocks Decline as Intel, Tech Losers Weigh on Market"
  • Reuters, "US technology sector suffers losses on Intel's sales outlook downgrade"
  • Financial Times, "Intel stocks soars as company revises sales forecast up"
  • New York Times, "Dow falls 66.07 points amid Intel, tech losses"

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