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Sector Update: Tech Stocks Gain Late Afternoon

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Tech stocks were higher late Wednesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) rising 2.1% and the State Street SPDR S&P Semiconductor ETF (XSD) climbing 4.7%.

The Philadelphia Semiconductor index popped 4.1%.

In corporate news, Microsoft-backed OpenAI (MSFT) is aiming for an initial public offering as soon as September that will value the company at more than $1 trillion, the Financial Times reported. Microsoft shares rose 1%.

Nvidia's (NVDA) fiscal Q1 sales are expected to outperform market projections, with potential for "enhanced" cash returns likely to be among the key areas of focus, BofA Securities said in a note. The brokerage maintained its buy rating on the Nvidia stock, with a $320 price objective, citing its "dominance in the fastest growing tech market and its compelling valuation." Nvidia shares rose 1.3%.

Meta Platforms (META) CEO Mark Zuckerberg told employees the company does not expect further company-wide layoffs this year, Reuters reported, citing an internal memo. Meta on Wednesday cut 10% of its global workforce and reassigned 7,000 employees to AI-related initiatives as part of a broad restructuring, the report said. Meta shares added 0.2%.

Intuit (INTU) is laying off about 17% of its global workforce, or roughly 3,000 employees, as part of a restructuring aimed at simplifying operations and sharpening focus on key priorities, including AI initiatives, Reuters reported. Intuit shares were down 3.6%.

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