Nasdaq plummets 2.38% as semiconductors hit by a sharp wave of selling

Cybersecurity and Energy as Support

In a sea of red, a few stocks managed to stand out. Thomson Reuters Corporation climbed 3.41% to reach $90.38, marking the largest increase on the index. The information services group benefited from renewed interest in less cyclical assets. Diamondback Energy followed with a 3.15% rise to $202.19, driven by a sector rebound in energy. Cybersecurity stocks also showed strong resilience: Fortinet gained 2.71% to $81.03, Atlassian 2.51% to $68.13, Palo Alto Networks 2.05% to $156.36, and CrowdStrike 1.75% to $392.62. Autodesk rose 1.87% to $239.83, while Cognizant and Adobe gained 1.62% to $60.76 and 1.53% to $240.88, respectively. Exelon rounded out this group with a 1.53% increase to $48.40.

Semiconductors and Tech Face a Downturn

The semiconductor sector experienced a dramatic downturn. Applovin Corp plummeted 10.41% to $391.21, marking the largest drop in the index. Equipment makers were particularly hit: Lam Research fell 9.35% to $211.62, and Applied Materials slipped 8.34% to $338.55. Meta Platforms declined 7.96% to $547.54, amid a widespread loss of confidence in tech giants. Advanced Micro Devices decreased 7.49% to $203.77, Micron Technology dropped 6.97% to $355.46, and Intel declined 6.53% to $44.10. KLA Corporation lost 6.00% to $1,451.13, Palantir Technologies fell 4.78% to $147.56, and GlobalFoundries decreased 4.64% to $44.57. This sharp correction reflects an unfavorable sector rotation away from growth stocks, which had driven the market in recent weeks.

A Harsh Session of Consolidation

The Nasdaq recorded one of its steepest declines of the week, closing at 23,587 points. This session highlights the current fragility of market sentiment toward technology stocks as the end of the first quarter approaches. Investors appear to favor taking profits on stocks most exposed to growth, opting instead for more defensive positions.