Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 24, 2024.
Brendan McDermid | Reuters
Stock futures were flat in overnight trading after a selloff in favored technology names brought the Nasdaq Composite to its worst day since April.
Futures tied to the Dow Jones Industrial Average added 10 points. S&P 500 and Nasdaq-100 hovered near the flatline.
In extended trading, SolarEdge Technologies sank 13% after announcing plans for a $300 million private offering of convertible notes, while Pool Corp dropped 8% after adjusting its guidance downward.
During the regular session, the Dow Jones Industrial Average bucked Monday’s selloff, adding nearly 261 points, or 0.67%. The S&P 500 dropped 0.31%, while the Nasdaq Composite shed 1.09% for its worst day since April as investors rotated out of semiconductors.
Nvidia sank nearly 7% on Monday, building on a 4% decline from last week. Other connected semiconductor and artificial intelligence names fell, with Super Micro Devices dropping 8.7%. Qualcomm shed 5.5%, while Broadcom declined nearly 4%. Information technology was the worst-performing sector in the broad index as a result, dropping 2.1%.
But the recent selloff in semis isn’t anything alarming given historical patterns. Renaissance Macro Research’s Jeff deGraaf told CNBC’s “Closing Bell” Monday that the summer is typically a tough time sector, noting that the third quarter typically registers as the worst period for the industry.
“The good news is I think Nvidia is still in the long-term uptrend,” he said. “I think these corrections probably prove to be buyable. You just have to temper that sentiment.”
Wall Street is looking ahead to earnings from FedEx and Carnival on Tuesday as the season nears its end. Consumer confidence for June, the Richmond Fed Index, and home price data are also on deck ahead of Friday’s personal consumption expenditures price index release for May.