Sector Update: Tech Stocks Fall Late Afternoon
Tech stocks were lower late Wednesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) decreasing 1% and the State Street SPDR S&P Semiconductor ETF (XSD) falling 2.6%.The Philadelphia Semiconductor index dropped 1.9%.In sector news, the White House has yet to share details on its new AI framework, leaving tech companies uncertain on how the government plans to handle the release of AI frontier models, The Information reported. After meeting with companies such as OpenAI, Anthropic, and Alphabet's (GOOGL) Google in an early August briefing, the Office of the National Cyber Director has not given more clarity on the framework, nor has it given details on a potential public AI event related to the framework, the report said.In corporate news, Nvidia (NVDA) has considered participating in a $20 billion-valuation funding round for Mercor, a data labeling provider that helps it develop its open-source AI models, The Information reported. Nvidia shares were fractionally lower.Marvell Technology (MRVL) shares jumped past 8% after the chip designer entered into a deal that would allow Google to buy up to $12.18 billion of Marvell shares as part of a collaboration.Nebius (NBIS) shares fell past 12% after it said Wednesday it plans to offer $4.5 billion of convertible senior notes in a private offering.Backblaze (BLZE) shares were down 11% after the company said late Tuesday it plans to issue $150 million in convertible senior notes due 2031 via a private placement to institutional investors.
