Monday sees a popular washout of tech stocks as Palantir, Nvidia, Rigetti Computing fall
Dominika Zarzycka | Nurphoto | Getty Images
Technology stocks popular with retail investors fell on Monday as investors took profits from their 2024 winners and shed more speculative names in a rising interest rate environment.
Nvidia fell 3%. Palantir down 4%, while quantum computing is the winner Rigetti Computing fell 23 percent. Last year’s Nasdaq winner AppLovin also sold out about 3%.
Palantir, 1 day
The sell-off comes amid a rise in bond yields, with the yield on the 10-year bond touching its highest level since late 2023 on Monday. A strong jobs report on Friday cast doubt on whether the Federal Reserve will continue to cut interest rates at all this year.
“While tech stocks have made big gains as interest rates have fallen last year, both Wall Street and Main Street have serious doubts about any further rate cuts from the Fed,” said AXS Investments CEO Greg Bassuk, adding that Friday’s report “cemented” those concerns.
Monday’s moves also follow a losing week for many key tech and quant names, with Truist’s Keith Lerner noting that the leaders are eventually falling in the correction phase. The overall market uptrend is “still intact” but undergoing a reset, the co-chief investment officer said.
“In our view, it’s a necessary part of the correction phase and we’re probably further along in this correction than many investors are acknowledging since many stocks peaked in late November, early December,” Lerner said.
Other well-known tech stocks also fell on Monday, s Tesla last fall around 1%. Semiconductor stocks Micron technology fell 5%. The decline in the semiconductor sector came amid news of additional US government restrictions on AI chip exports.
Shares in Quantum computing, which got a boost from last year’s positive Alphabet chip announcement, also fell, with D-wave drops 28%. IonQ lost 10%. The sell-off followed comments from Meta CEO Mark Zuckerberg, who echoed last week’s comments from Nvidia CEO Jensen Huang suggesting that the beneficial quantum computers are decades away.
Rigetti Computing, 1 day
