Tech stock under pressure: AMD slumps 15.7%, fresh selling in software stocks drags US markets lower
Advanced Micro Devices plunged 15.7% even after reporting stronger quarterly profit than analysts expected and issuing revenue guidance for early 2026 that also topped estimates.
The decline came as investor expectations remained elevated after the stock had doubled over the past 12 months.Technology stocks more broadly faced pressure even where earnings remained strong.
Market participants have increasingly questioned whether valuations in major technology companies had risen too sharply following years of market leadership.The S&P 500 slipped 0.2%, marking its fourth modest drop in five sessions.
The Dow Jones Industrial Average rose 389 points, or 0.8%, while the Nasdaq composite declined 1% as of 11:30 a.m.
Eastern time, reflecting weakness concentrated in technology shares.Software companies are also facing uncertainty over whether artificial intelligence-led competition could disrupt existing business models.Uber Technologies fell 3% after reporting quarterly results below analyst expectations and issuing weaker profit guidance for the current quarter, while also announcing a new chief financial officer.Some technology-related names moved higher.
Super Micro Computer rose 14% after reporting stronger-than-expected quarterly profit, supported by demand for artificial intelligence servers and related equipment.Outside the technology segment, Eli Lilly gained 9.2% after beating profit expectations, supported by strong demand for its Mounjaro and Zepbound products.Match Group rose 5.7% after reporting better-than-expected results and raising its dividend, citing early success from safety improvements including a facial verification feature for Tinder.Walmart edged up 0.2%, a day after its market capitalisation crossed $1 trillion for the first time.In commodities, gold traded nearly flat at $4,935.60 per ounce after earlier rising above $5,000, while silver rose 3.7%, extending volatile moves seen in recent sessions.In the bond market, the yield on the 10-year US Treasury eased slightly to 4.27% from 4.28% in the previous session after mixed economic data, including weaker-than-expected private hiring and steady services sector expansion.In global markets, Japan’s Nikkei 225 declined 0.8% from record highs, while South Korea’s Kospi rose 1.6% to a fresh record level.
