Monday sees a popular washout of tech stocks as Palantir, Nvidia, Rigetti Computing fall

Technology stocks popular with retail investors fell on Monday as investors took profits from their 2024 winners and shunned more speculative names amid rising interest rates.

Nvidia decreased by 2%. Palantir down 4%, while the winner of quantum computing Discards calculations decreased by about 33%. Last year’s Nasdaq winner AppLovin also sold out about 1.5%.

The sell-off comes amid rising bond yields, with the 10-year Treasury yield hitting its highest level since late 2023 on Monday. A tough jobs report on Friday cast doubt on whether the Federal Reserve will continue to cut interest rates at all this year.

“While tech stocks have rallied significantly since interest rates fell last year, both Wall Street and Main Street have serious doubts about further Fed rate cuts,” said AXS Investments CEO Greg Basuk, adding that a report on Friday “consolidated” those concerns.

Monday’s moves also came after a losing week for many key technologies and quantum computing, with Truist’s Keith Lerner noting that the leaders are ultimately falling in a correction phase. The overall market uptrend is “still intact” but a reset is underway, the co-chairman of investments said.

“In our view, this is a necessary part of the correction phase, and we’re likely to be further along in this correction than many investors believe because many stocks peaked in late November, early December,” Lerner said.

Other big-name tech stocks also fell on Monday, with Micron technology decreased by 4%. The decline in the semiconductor sector came amid news of additional US government restrictions on the export of artificial intelligence chips.

Quantum computing shares, boosted by Alphabet’s positive chip announcement last year, also fell from D-wave decreased by 33%. IonQ lost 15%. The sell-off followed comments from Meta CEO Mark Zuckerberg, who echoed comments from Nvidia CEO Jensen Huang last week, which suggested that the beneficial quantum computers are decades away.