On Wednesday, the premium-priced technology market fell by 2.04% after losing 372.84 points. Investors sold artificial intelligence chip suppliers and the magnificent 7 firms.
Nvidia (NVDA), Broadcom (AVGO), AMD (AMD), and SMCI fell. SMCI stock lost 8.86% on the day to close at $37.04. The server supplier filed its financial statements, which removes de-listing risks. That relief rally trade did not last. After topping around $56 on Feb. 21, investors dumped the stock.
Arm Holdings (ARM) peaked in January at $175. Shares lost 7.52% on Wednesday to close at $114.93. Qualcomm (QCOM) advanced its complaint against Arm on March 25. It accused Arm of antitrust practices and filed the case with the European Commission, the U.S. Federal Trade Commission, and the Korea Fair Trade Commission.
In the Covid vaccine market, Moderna (MRNA) dropped by 7.00% and another 42 basis points in after-hours trade. Once the U.S. cuts its support for Gavi, which is backed by the World Health Organization, demand for vaccines worldwide will weaken. The cut will also hurt Pfizer (PFE), BioNTech (BNTX), Novavax (NVAX), and AstraZeneca (AZN).
Investors should continue to avoid Moderna. Vaccine sales continue to fall while the pipeline for new products has yet to come online.
Pfizer is also a risky value trap. Shares closed at $25.21, just 2.98% above its 52-week low.
