Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 24, 2024.
Brendan McDermid | Reuters
Stock futures were flat in overnight trade after a selloff in favored technology names sent the Nasdaq Composite to its worst day since April.
Futures are linked to Dow Jones Industrial Average added 20 points. S&P 500 and Nasdaq-100 hovering near a flat line.
In full trade, SolarEdge technology fell 13% after announcing plans for a $300 million private offering of convertible notes, while Pool Corp dropped 8% after setting downward guidance.
During the regular session, the Dow Jones Industrial Average bucked the selloff there, adding nearly 261 points, or 0.67%. At S&P 500 down 0.31%, while in Nasdaq Composite shed 1.09% for its worst day since April as investors spun out of semiconductors.
Nvidia sank nearly 7% there, building on the 4% decline from last week. The name of semiconductor and other artificial intelligence that is connected collapsed, with Super Micro Devices down 8.7%. Qualcomm shed 5.5%, while Broadcom declined by almost 4%. Information technology was the worst performing sector in the broad index as a result, down 2.1%.
But the recent selloff in the semis is nothing to worry about given the historical pattern. Renaissance Macro Research’s Jeff deGraaf told CNBC’s “Closing Bell” Monday that summer is typically a tough time sector, noting that the third quarter typically registers as the industry’s worst period.
“The good news is that I think Nvidia is still in a long-term uptrend,” he said. “I think the correction is probably buyable. You just have to keep the sentiment under control.”
Wall Street is looking ahead to earnings from FedEx and Carnival on a Tuesday when winter is approaching. Consumer confidence for June, the Richmond Fed Index, and home price data are also on deck ahead of the release of the personal consumption expenditure price index for May.