- Weaker ISM services reading paradoxically failed to improve sentiment on Wall Street
- Broadcom, Intel and Salesforce lead tech companies' declines
- Sharp drop in iPhone sales in China lifts AAPL shares more than 2.5% lower today
Alphabet broke out below its 200-day exponential moving average. However, the declines were almost fully erased in the second part of the session. Nvidia shares are resisting selling pressure in the semiconductor sector, after CFRA raised its target price for Nvidia to $1,000 per share (previously $840). Today's session appears to be an extension of profit-taking, following Wall Street's impressive rally.
Among technology companies, we see continued weak sentiment around Tesla (TSLA.US) shares. The company's car factory near Berlin was the target of a likely attack by activists who cut its power supply, paralysing production. Sales of iPhones in China fell 24% year-on-year, with the manufacturer overshadowed by market share gainer Huawei, putting a marker over prospects for improving business and valuation multiples.
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Shares of BigTech companies are performing mostly poorly today, with Tesla, Microsoft and Apple losing the most heavily. A broader sell-off was halted by Alphabet (GOOGL.US), which, alongside Apple, has long been the weakest company among the 'magnificent seven'. A clear realisation of gains can also be seen among chipmakers, where virtually only Nvidia managed to resist the declines. Source: xStation5
Alphabet (GOOGL.US) shares lost nearly 2% during today's session and temporarily broke out below the support barrier set by the 200-day exponential moving average (golden curve) on the chart. At the moment, however, the magnitude of the declines has been mostly erased, with the company's shares losing "only" 0.35%. Source: xStation
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