"Hardest hit have been the biggest winners of a rally that has vaulted chipmaker Nvidia from a niche player to the most valuable company on Earth. "The selloff appears to be largely positioning-driven, with recent outperforming names taking the worst of the move," said Jon Withaar, senior portfolio manager at Pictet Asset Management in Singapore. There was no obvious trigger for the pullback, which began with an unexpectedly negative reaction to strong financial results at Silicon Valley data and artificial intelligence firm Palantir Technologies."
"Shares in the market darling finished down nearly eight per cent on Tuesday, and fell a further three per cent in extended trade. "So people are up to their noses in these AI stocks," said Herald van der Linde, head of equity strategy for Asia Pacific at HSBC. "But how much further can they go? How much more can they buy? And my belief is that what we're going to see is a breather ... and the breather could come with a rotation.""
Wall Street opened muted after a tech-led selloff sparked valuation concerns, with the Dow up 0.03%, the S&P 500 down 0.03%, and the Nasdaq up 0.04%. Selling extended globally into a second day, leaving Seoul and Tokyo roughly five percent below recent peaks. Technology stocks, especially high-flying AI and chip names, took the worst of the declines. Nvidia, a major winner of the rally, saw significant weakness. Brokers and investors describe the moves as positioning-driven rather than driven by a single trigger, noting an initial negative reaction to Palantir's strong results and anticipating a possible breather or rotation.
Read at www.cbc.ca
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