Semiconductor Stocks Drag Down Tech Sector

Major U.S. equities indexes were mixed to open a new trading week that includes a busy calendar of corporate and economic data releases.

The latest earnings report from artificial intelligence (AI) semiconductor powerhouse Nvidia (NVDA) is set for release on Wednesday afternoon, while investors will get a look at important inflation and economic growth figures later in the week.

The S&P 500 slipped 0.3% on Monday, while the Nasdaq was down 0.9%. The Dow touched an all-time intraday high in the morning but lost steam later in the session to close with a daily gain of 0.2%.

Technology was the weakest-performing sector, with stocks in the semiconductor industry posting significant losses ahead of Nvidia’s report. Shares of storage and server provider Super Micro Computer (SMCI) posted the heaviest losses of any stock in the S&P 500, tumbling 8.3%. In its most recent quarterly report, released in early August, Supermicro missed earnings expectations as lower margins weighed on profits. The firm also announced a 10-for-1 stock split.

Chipmaker Broadcom (AVGO) said it partnered with Hitachi Vantara, a data storage subsidiary of the Japanese conglomerate Hitachi, to collaborate on hybrid cloud solutions designed to help companies scale up AI-related processes. However, Broadcom shares could not escape the downward pressure in the chip industry, falling 4.1% on Monday.

Meanwhile, shares of memory chip designer Micron Technology (MU) sank 3.8% after Needham trimmed its price target on the stock to $140 from $150. Analysts cited a flat outlook for shipments of Micron’s DRAM and NAND memory products.

Shares of human resources software provider Dayforce (DAY) notched Monday’s top performance in the S&P 500, jumping 4.0%. Last week, Dayforce announced the launch of a new employee training tool with AI capabilities designed to optimize the learning process. In its most recent quarterly report, the firm exceeded sales and profit forecasts, boosted by strong demand for its payroll and human capital management (HCM) services.

Jack Henry & Associates (JKHY) shares gained 2.6% after the financial technology company declared a regular quarterly dividend of 55 cents per share. Based on Monday’s closing price, the payout equates to a forward dividend yield of 1.3%.

Shares of oil and gas exploration firm EOG Resources (EOG) added 2.5% on Monday. Analysts at Zacks Equities Research recently highlighted EOG as a strong value stock, noting the company’s solid earnings metrics and suggesting that unexploited premium locations could boost EOG’s production outlook.