Shares of technology companies fell, but not by as much as the broad market, as traders rotated out of the retail sector in the wake of Walmart's earnings.
Alibaba said fiscal first-quarter earnings slumped as the Chinese e-commerce company continued investing in artificial intelligence, racing to preserve its domestic lead in the fast-growing niche. The AI expenditure warning echoed that of rival Baidu.
One strategist said weakness in the Treasury market masked even more drastic moves in tech companies' bonds. "Long-dated Nvidia and Meta bonds have made new lows, breaking below the levels reached during the 'Situational Awareness' panic," said Lorenzo Di Mattia, founder and chief investment officer at hedge-fund firm Sibilla Capital. While the equity market could ride out the Treasury-market volatility, further distress in these tech-company bonds would cause more ripple effects, Di Mattia said.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
