Tech Stocks Weigh on Wall Street[embedded content]
NEW YORK — Wall Street’s major indexes fell on Friday as weak earnings reports from major technology companies led to a big drop for the sector.
Intel Corp shares sank 8.6 percent after the chipmaker’s data center business missed estimates amid stiff rivalry from Advanced Micro Devices Inc. AMD shares rose 3.2 percent.
Twitter Inc shares plunged 20.5 percent after the social media network reported a decline in monthly active users, versus the increase analysts had expected, and warned of further drops as it deletes phony accounts.
The S&P 500 technology index fell 2.0 percent, the most among the major S&P sectors. Shares of Apple Inc, which is set to report quarterly results on Tuesday, fell 1.7 percent. Shares of Microsoft Corp and Alphabet Inc, which had soared after both companies recently reported strong quarterly results, dropped 1.8 percent and 2.5 percent, respectively. Alphabet shares touched an all-time high earlier in the session but reversed course.
The pressure on tech stocks started on Thursday after Facebook Inc gave a dismal forecast that caught investors off guard about growth prospects in a sector that has led the market’s march toward record highs.
“There’s a bit of concern perhaps growing that the bloom’s off the rose for these tech stocks, that they are not invincible,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
The Dow Jones Industrial Average fell 76.01 points, or 0.3 percent, to 25,451.06, the S&P 500 lost 18.62 points, or 0.66 percent, to 2,818.82 and the Nasdaq Composite dropped 114.77 points, or 1.46 percent, to 7,737.42.
The Nasdaq exceeded Thursday’s losses to register once again its biggest daily percentage drop in a month.
For the week, the Nasdaq shed 1.06 percent, but the S&P rose 0.61 percent. The Dow, cushioned by promising