Semiconductor stocks fell in pre-market trading Wednesday, with Micron Technology dropping nearly 4% and Marvell Technology falling over 3%. The decline extends a tech-sector selloff ahead of the consumer price index release expected to show inflation at 4.2%.
Semiconductor stocks slid in pre-market trading Wednesday, with Micron Technology Inc. falling nearly 4%, extending a tech-sector selloff that began the prior session.
"It's normal to see the market after a big move up to see investors question the thesis, take some profits, and then have the market pull back a little bit," Adam Sarhan, managing director at 50 Park Investments, said.
Marvell Technology Inc. dropped more than 3%, while ASML Holding NV and Intel Corp. each fell over 2%. Nvidia Corp., the bellwether for artificial intelligence infrastructure spending, declined more than 1%. The moves follow a broad tech selloff Tuesday that pushed Apple Inc. down 3.6% after lukewarm reviews of its AI update to the Siri voice assistant. The S&P 500's technology and energy sectors were the only two of 11 groups to retreat that session, while the other nine advanced.
The pre-market decline comes ahead of Wednesday's consumer price index release, with economists expecting the report to show inflation accelerated to 4.2%, the highest level in more than three years. A hot reading could further pressure rate-sensitive growth stocks and deepen the rotation out of technology names that powered the market's rally. The 10-year Treasury yield edged higher as traders positioned for the data, while Brent crude briefly dipped below $90 a barrel after President Donald Trump hinted at a potential deal with Iran.
The selloff marks a reversal from Monday, when the VanEck Semiconductor ETF gained 3.3% as investors bought the dip following a 10% plunge in the Philadelphia Semiconductor Index — its largest single-day drop since March 2020. Nvidia's chief executive officer had characterized the pullback as a buying opportunity, saying the global infrastructure buildout for AI was still in its early stages.
Traders also pointed to positioning ahead of the SpaceX initial public offering and other major stock market debuts expected in the coming weeks as a potential source of selling pressure, with investors raising cash by trimming winning positions.
This article is for informational purposes only and does not constitute investment advice.
