Traders work at the New York Stock Exchange (NYSE) in New York City, U.S., on June 24, 2024.
Brendan McDermid | Reuters
Stock futures were steady in overnight trading after a selloff in favorite tech names sent the Nasdaq Composite to its worst day since April.
Futures linked to Dow Jones Industrial Average added 31 points, or 0.08%. S&P 500 and Nasdaq-100 floated near the flat line.
In extended trade, SolarEdge Technologies sank 13% after announcing plans for a $300 million private offering of convertible notes, while Swimming pool corporation fell 11% after adjusting your downward orientation.
During the ordinary session, the Dow Jones Industrial Average resisted Monday's sell-off, adding almost 261 points, or 0.67%. He S&P 500 fell 0.31%, while the Nasdaq Composite lost 1.09% in its worst day since April as investors abandoned the semiconductor sector.
NVIDIA sank almost 7% on Monday, taking advantage of a 4% drop since last week. Other connected semiconductor and artificial intelligence names fell, with super microcomputer falling 8.7%. Qualcomm lost 5.5%, while Broadcom decreased almost 4%. As a result, information technology was the worst-performing sector in the broad index, falling 2.1%.
But the recent wave of selling in the semifinals is not at all alarming given historical patterns. Jeff deGraaf of Renaissance Macro Research told CNBC "Closing bell"Monday that summer is usually a difficult time for the sector, noting that the third quarter is usually recorded as the worst period for the industry.
"The good news is that I think Nvidia is still in a long-term uptrend," he said. "I think these corrections are probably buyable. You just have to temper that sentiment."
Wall Street awaits earnings Fedex and Carnival on Tuesday as the season nears its end. June consumer confidence, the Richmond Federal Reserve Index and home price data are also in discussion ahead of Friday's release of the May Personal Consumption Expenditures Price Index.
