The week started on a sour note for the Nasdaq 100, which slipped by 1%, erasing the gains made last Friday when the index rallied following Fed Chair Jerome Powell‘s hint at a possible rate cut during his much-anticipated speech at Jackson Hole.
Monday brought no significant news or economic data directly impacting tech stocks, reflecting a cooling of risk sentiment after the tech-heavy index had surged over 14% since its August lows.
Two main factors weighed on the Nasdaq 100 on Monday, as tracked by the Invesco QQQ Trust QQQ: the decline in semiconductor stocks and the sharp plunge in PDD Holdings Inc PDD.
Investors took a cautious stance on semiconductor stocks ahead of the highly anticipated earnings report from Nvidia Corp. NVDA, set to be released Wednesday after the market close.
A basket of chipmaker stocks, as tracked by the iShares Semiconductor ETF SOXX, dropped 2.5% on Monday, unable to hold above its 200-day moving average.
Since semiconductor stocks represent nearly a quarter of the Nasdaq 100’s portfolio, they alone accounted for a 0.7 percentage point drop in the index’s performance for the day.
The other significant drag on the index was the Chinese retail giant PDD Holdings, which plummeted by 28.5% on disappointing earnings results, dragging down the Nasdaq 100 by an additional 0.25 percentage points.
Nasdaq 100 Negative Performance Contributors On Monday
Company | Weight (%) | 1-day return (%) | Contribution (pp) |
PDD Holdings Inc. | 0.62 | -28.52 | -0.25 |
Broadcom Inc. AVGO | 5.15 | -4.03 | -0.21 |
NVIDIA Corporation NVDA | 8.24 | -2.26 | -0.19 |
Tesla, Inc. TSLA | 2.75 | -3.22 | -0.09 |
Microsoft Corp. MSFT | 4.76 | -1.3 | -0.06 |
Chart: Tech Stocks Slip To 50-Day Moving Average Support
![](https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/26161805/image-251-1024x462.png)
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