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Sector Update: Tech Stocks Fall Late Afternoon

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Tech stocks were lower late Monday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) falling 1.8% and the State Street SPDR S&P Semiconductor ETF (XSD) dropping 6.3%.

The Philadelphia Semiconductor index lost 5.8%.

In corporate news, Amazon-backed (AMZN) Anthropic CEO Dario Amodei called for the AI industry to slow the pace of model capability development, saying that accelerating advances and recent alignment incidents could outpace efforts to ensure AI safety. Amazon shares were down 1.2%.

Microsoft-backed (MSFT) OpenAI CEO Sam Altman said the company's highly anticipated initial public offering will not take place in 2026 due to ongoing concerns around safety and control in the AI sector, Fortune reported, citing an interview with Altman. Separately, Microsoft has posted a document outlining the intended behavior and values of the company's future AI models. The tech giant said the document is being shared for public consultation. Microsoft shares were up 2.1%.

Nvidia (NVDA), Palantir (PLTR) and Booz Allen Hamilton (BAH) have started demanding guarantees or eliminating use of Anthropic's and OpenAI's most advanced models over concerns that the AI giants could retain their customers' critical data, The Information reported. Microsoft has started leveraging that unease to try to lure OpenAI clients to its own AI products, and it has pitched its own isolated cloud environments to customers worried about privacy, the report said. Nvidia shares fell 3.2%, Palantir rose 3.7%, and Booz Allen was up 4.2%.

Oracle (ORCL) has started a new round of layoffs after cuts to its workforce earlier this year, Business Insider reported. Oracle shares fell 3.9%.

What else is happening in Sectors?

Sectors

Sector Update: Tech Stocks Gain Late Afternoon

Tech stocks climbed late Friday afternoon with the State Street Technology Select Sector SPDR ETF (XLK) rising 1.4% and the State Street SPDR S&P Semiconductor ETF (XSD) adding 3%.The Philadelphia Semiconductor index gained 1.7%.In corporate news, Dell (DELL) shares jumped 12% after RBC Capital Markets initiated its coverage of the stock with an outperform rating and a $640 price target. Dell is well positioned to benefit from the multiyear AI infrastructure spending cycle, RBC said.Microsoft (MSFT) plans to more than triple its global data center capacity to over 38 gigawatts by 2032, Bloomberg reported. Microsoft shares added 0.8%.Oracle's (ORCL) fiscal Q1 results showed surging cloud growth, though margin pressure and a "modest" earnings guidance increase loomed over infrastructure buildout and profitability, Morgan Stanley said. Oracle shares fell 2%.Broadcom's (AVGO) licensing revamp for VMware software after its $61 billion takeover is attracting scrutiny from EU antitrust regulators, Bloomberg reported. Broadcom shares rose 0.3%.

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Sectors

Sector Update: Healthcare Stocks Decline Late Afternoon

Healthcare stocks were lower late Friday afternoon, with the NYSE Healthcare Index down 0.3% and the State Street Health Care Select Sector SPDR ETF (XLV) easing 0.1%.The iShares Biotechnology ETF (IBB) rose 0.5%.In corporate news, Novo Nordisk (NVO) shares fell 2% after Morgan Stanley downgraded the stock to underweight from equal weight.Eli Lilly (LLY) said Friday that it has completed its acquisition of AtaiBeckley (ATAI), a clinical-stage biopharmaceutical company developing rapid-acting neuroplastogens for mental health conditions. Lilly shares were down 0.6%.Cosmos Health (COSM) said Friday its unit Cana Laboratories entered a new five-year contract manufacturing deal with Viofar to secure 2.5 million additional units of the Rosartia cardiovascular medicine. Cosmos shares rose 1.2%.Exelixis (EXEL) shares fell 1.5% after it said the US Food and Drug Administration extended the review period for its new drug application for its metastatic colorectal cancer candidate zanzalintinib, in combination with atezolizumab, by three months.

$COSM$EXEL$LLY$NVO
Sectors

Sector Update: Consumer Stocks Rise Late Afternoon

Consumer stocks were higher late Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) increasing 0.4% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) adding 0.9%.The University of Michigan's preliminary consumer sentiment index fell to 47.8 in September from 51.7 in August, larger than an expected decrease to 51.0 in a Bloomberg survey.In corporate news, Walt Disney's (DIS) ABC and Jimmy Kimmel are in discussions to renew the host's late-night show beyond the 2026-2027 season, Variety reported. Shares added 0.7%.Tesla's (TSLA) Semi truck is slated for deliveries in Europe from 2027 onwards, according to the company's Friday post on X. Tesla shares rose 0.5%.Stellantis (STLA) has signed a memorandum with Roshel, a Canadian armored vehicle manufacturer, outlining steps toward the sale of an idled car factory near Toronto, Bloomberg reported. Separately, Stellantis plans to invest over 1 billion euros ($1.16 billion) to build a new van at a factory in France as part of a larger overhaul of its European manufacturing operations, Bloomberg reported. Shares were up 2.5%.Kroger (KR) lowered its full-year identical sales growth outlook as the metric decelerated year over year in fiscal Q2 and missed market estimates, while its revenue fell short of expectations.Kroger shares were up 3.1%.RH (RH) shares were 0.2% lower following its fiscal Q2 results in the previous day.

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