[U.S. Stocks] Tech selling continues amid ‘rotation trade’... SOXL plunges 11.5%

[Financial News]  

New York stocks ended mixed on the 2nd (local time), the first trading day of November.
The S&P 500 and Nasdaq, both heavily weighted toward tech stocks, failed to hold their gains through the middle of the session and ended lower.
This earnings season has confirmed that massive investments in artificial intelligence (AI) have yet to secure profitability, and investors were again seen selling tech stocks and turning back to large-cap blue chips.
Meanwhile, continued selling in semiconductor stocks sent SOXL, the Direxion Daily Semiconductor Bull 3X Shares, a leveraged exchange-traded fund (ETF) that tracks three times the daily share-price moves of 30 major semiconductor stocks, plunging 11.5%.

The three major indexes were all higher through the middle of the session, but selling in tech stocks flared up again later, leaving them to finish mixed.
The Dow Jones Industrial Average (DJIA) closed up 213.67 points (0.41%) from the previous session at 51,983.98.
By contrast, the S&P 500 slid 38.67 points (0.51%) to 7,541.40, while the Nasdaq fell 272.68 points (1.07%) to 25,164.32. The S&P 500 had risen as much as 1.1% intraday and the Nasdaq 1.4%, but both gradually pared their gains and ultimately closed lower.
So-called smokestack stocks were strong on the day.
Sherwin-Williams, a paint and coatings manufacturer and distributor, rose 5.9%, while McDonald’s, Visa, 3M, American Express and Boeing each gained more than 2%, lifting the Dow.
Meanwhile, amid weakness in tech stocks, the NASDAQ-100 Index, made up of 100 large-cap tech stocks, fell 395.03 points (0.39%) to 27,989.85. TQQQ, a leveraged ETF that tracks three times the index’s daily moves, slid $2.55 (4.11%) to $59.46.

Semiconductor stocks also reversed their early gains and came under selling pressure, which intensified later in the session.
NVIDIA, the sector’s leading stock, initially surged 2.6% from the previous close to $209.98, while Micron rose 0.8% to $892.08, leading a semiconductor rebound. But both eventually turned lower.
NVIDIA fell $2.58 (1.26%) to $202.06, while Micron plunged $51.15 (5.78%) to $833.59.
Intel plunged $5.79 (8.80%) to $59.97, while SanDisk retreated $75.81 (6.59%) to $1,075.08.
SK hynix’s American depositary receipts (ADRs) also failed to hold their gains through the middle of the session, closing down $1.50 (1.01%) at $147.71.
SOXL, which tracks three times the daily share-price moves of 30 major semiconductor stocks, slid $8.88 (11.52%) to $68.17, a steep plunge.

Big Tech stocks also struggled.
Alphabet closed down $0.85 (0.30%) at $278.99, while Apple fell $6.31 (1.83%) to $338.32.
Microsoft Corporation (MS) plunged $14.79 (2.83%) to $507.12, while Meta Platforms fell $8.26 (1.34%) to $606.73.
By contrast, Elon Musk’s SpaceX and Tesla rose in tandem.
SpaceX closed up $1.65 (1.22%) at $136.37, amid expectations that it would expand its business into mobile communications. The stock had surged as much as 5.4% intraday to $142.05, but had to give up much of its gains amid the sharp selloff in tech stocks.
Tesla closed up $4.01 (1.00%) at $403.82.

[email protected] Song Kyung-jae Reporter