Tech-Led Sell-Off Hits Wall Street as Investors Pivot to Value
U.S. equities fell in a broad risk-off move, with technology stocks leading declines as investors took profits and positioned cautiously ahead of upcoming economic data. The shift toward value-oriented shares pressured growth names after a strong year-to-date run for many tech leaders.
Major indexes finished lower, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite down roughly 1.6% to 2.3%. Semiconductors were particularly weak, pushing the Philadelphia Semiconductor Index down 3.7%. Across the sector, multiple technology names slid between 5% and 13% as valuations reset and momentum cooled.
Stock-specific moves underscored the rotation. Disney fell 7.8% after missing sales expectations, while Cisco gained about 5% on continued AI infrastructure demand. Profit-taking hit several high flyers: Nextracker’s 124% year-to-date surge drew sellers, Sanmina dropped 10.9% despite a 104% YTD gain, and 3D Systems is now down 32.5% this year with valuation near a five-year low. Sterling tumbled 13.7% even as the company highlighted a strong backlog and share buybacks, and Blink Charging remains 42% below its recent peak, adding pressure to long-term holders.
Risk appetite also faded in financials and digital assets. Cryptocurrencies declined, weighing on brokerage and trading platforms: Robinhood, Interactive Brokers, and Coinbase all moved lower. With macro uncertainty driving a shift from growth to value, markets appear poised for higher volatility as investors reassess earnings durability, AI-related demand, and the impact of upcoming economic releases.
Key Points – Major U.S. indexes fell 1.6%–2.3%, with the semiconductor index down 3.7%. – Tech stocks saw broad declines, with several names dropping 5%–13% amid profit-taking. – Disney slid 7.8% on weaker sales, while Cisco rose about 5% on AI infrastructure demand. – Nextracker and Sanmina faced profit-taking after strong year-to-date gains. – 3D Systems’ valuation hit a five-year low; Blink Charging remains 42% below its peak. – Crypto weakness weighed on Robinhood, Interactive Brokers, and Coinbase as risk assets retreated.
