Technology Sector Struggles While Services Lag Behind

As of midday Wednesday, the Technology & Communications sector is the worst performer, showing a 2.7% decline. Notable stocks within this group, NVIDIA Corp (Symbol: NVDA) and Advanced Micro Devices Inc (Symbol: AMD), are underperforming, with losses of 9.0% and 8.5%, respectively. The Technology Select Sector SPDR ETF (Symbol: XLK), which tracks the sector, is down 4.1% for the day and has decreased 16.99% year-to-date. Year-to-date, NVIDIA Corp is down 23.93%, while Advanced Micro Devices Inc has seen a decline of 27.80%. Together, NVDA and AMD represent about 15.1% of the underlying holdings in XLK.

Following closely is the Services sector, which has recorded a 2.2% loss. Among large-cap Services stocks, Interpublic Group of Companies Inc. (Symbol: IPG) and Omnicom Group, Inc. (Symbol: OMC) stand out with losses of 7.0% and 6.7%, respectively. The iShares U.S. Consumer Services ETF (IYC), which tracks the Services stocks, is down 2.6% in midday trading, with a year-to-date decline of 13.32%. Interpublic Group is down 15.36% year-to-date, while Omnicom Group is down 15.85%. Together, IPG and OMC comprise approximately 0.5% of IYC’s underlying holdings.

For a comparative look at these stocks and ETFs on a trailing twelve-month basis, refer to the relative Stock price performance chart below, where each symbol is distinguished by color as indicated in the legend.

To further illustrate market trends, here is a snapshot of how the components of the S&P 500 are performing within various sectors during afternoon trading on Wednesday. Notably, one sector is up, while eight sectors are down.

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Also See:

• Top Ten Hedge Funds Holding SDG
• AVTA Options Chain
• KWAC Options Chain

The views and opinions expressed herein do not necessarily reflect those of Nasdaq, Inc.