Sector Update: Tech Stocks Drop Tuesday, Weighing on Broader Market

Last Updated: Tuesday, January 25, 2022 3:58 PM | MT Newswires

Technology stocks retreated Tuesday, with the Technology Select Sector SPDR ETF (XLK) dropping 1.9% while the Philadelphia Semiconductor Index was down 2.9% late in the afternoon.

In company news, IBM (IBM) shares climbed 5.9% after the enterprise IT provider's Q4 sales and earnings topped Street views. Demand for technology and consulting services produced more than $1 billion of extra revenue for the tech giant following the spinoff of its Kyndryl Holdings (KD) managed infrastructure-services business. IBM is also seeing a clear acceleration in hybrid cloud spending, which could be a positive portent for upcoming results by other tech bellwethers, Wedbush analyst Daniel Ives said in a research note.

SentinelOne (S) shares slumped 5%. The cybersecurity software firm provider said the accounting firm KPMG will use SentinelOne's Singularity XDR platform to accelerate investigations and help speed up its response to cyberattacks on clients. Financial terms were not disclosed.

TuSimple (TSP) slid 2.3%. The autonomous driving technology company announced a collaboration agreement with industrial and commercial real estate developer Hillwood, which will prepare its properties for handling self-driving trucks starting with its AllianceTexas development near the international airport in Fort Worth, Texas.

Toast (TOST) shares tumbled 5.9% after Mizuho lowered its price target for the specialty software provider's stock by $19 to $24 and reiterated a neutral rating.

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