WS #16486
The US tech sector is experiencing a sharp divergence. Alphabet's significant earnings miss has triggered a 10.6% gap-down, dragging down Nasdaq futures and ETFs with heavy Alphabet exposure. Conversely, Microsoft is rallying 4% in premarket trading, driven by strong software performance and cloud momentum. This split highlights that the tech rally is no longer broad-based but rather concentrated in specific high-quality names. STMicroelectronics reported Q3 revenue of $3.76 billion, exceeding analyst expectations and raising its full-year revenue growth forecast to approximately 23%. This strong performance, alongside ASE Technology's results, suggests the semiconductor industry is stabilizing after a period of weakness, offering a positive signal for the hardware side of the tech sector.
US Tech Divergence
The US tech sector is experiencing a sharp divergence. Alphabet's significant earnings miss has triggered a 10.6% gap-down, dragging down Nasdaq futures and ETFs with heavy Alphabet exposure. Conversely, Microsoft is rallying 4% in premarket trading, driven by strong software performance and cloud momentum. This split highlights that the tech rally is no longer broad-based but rather concentrated in specific high-quality names.
STMicroelectronics reported Q3 revenue of $3.76 billion, exceeding analyst expectations and raising its full-year revenue growth forecast to approximately 23%. This strong performance, alongside ASE Technology's results, suggests the semiconductor industry is stabilizing after a period of weakness, offering a positive signal for the hardware side of the tech sector.