Core Insights - The tech sector experienced its largest weekly decline since April, with the S&P 500 Information Technology Sector Index down 4.2% in the first week of November [2][3][4] - Despite the recent pullback, tech remains the best-performing sector in the S&P 500 for the year, following a significant rally over the past six months [5][6] Market Performance - The Technology Select Sector SPDR Fund lost approximately 4.2% for the week, mirroring the decline in the broader tech sector [2] - The Nasdaq-100 has seen a nearly 60% increase from its April low to its recent high, indicating strong performance prior to the current selloff [6] Individual Stock Movements - Major tech stocks like Microsoft and Meta both saw declines of about 4% this week, despite reporting earnings that exceeded expectations [7] - High-growth stocks faced even steeper losses, with Palantir Technologies dropping over 11% for the week, and Nvidia down 7% ahead of its earnings call [8]

Core Viewpoint - The technology sector is experiencing its worst week since April 2025, with significant declines in major tech stocks, raising concerns about high valuations despite strong earnings reports [1][2][6]. Group 1: Market Performance - The S&P 500 Information Technology Sector Index is down 6% for the week, marking the largest weekly decline since a drop of 11.4% in early April 2025 [2]. - Tech-sector exchange-traded funds, such as the Technology Select Sector SPDR Fund, have also seen a decline of 6.2% week to date [2]. - Major tech companies like Microsoft and Meta reported earnings beats but still saw their shares drop over 4% and more than 6% respectively for the week [6]. Group 2: Investor Sentiment - Despite the current selloff, tech remains the best-performing S&P 500 sector for the year, with the Nasdaq-100 rallying nearly 60% from its April low to its recent high [5]. - Analysts suggest that the recent pullback is a necessary correction after a significant rally, indicating that the market remains relatively healthy [6][8]. - Some investors are taking the opportunity to buy the dip, indicating confidence in the long-term prospects of tech stocks [8]. Group 3: Individual Stock Performance - High-growth tech stocks like Palantir Technologies and Nvidia have experienced greater losses, with Palantir dropping over 15% despite strong quarterly earnings, and Nvidia down over 11% ahead of its earnings call [7]. - Concerns about AI-related valuations have contributed to Nvidia's decline, but analysts believe there will be demand for the stock at lower levels [7][8].