Tech Stocks on Wednesday took a major hit , with the Nasdaq down by more than 1.5 % while the S&P 500 slid almost 1% amidst broad sellfoff’s in the market. The slump was pinned to flring concerns on the euro debt crisis, the Fed employment report and profit booking by the traders .
The Nasdaq Composite Index shed 46 points and closed the day at 3,068 while the Philadelphia Semiconductor Index closed down nearly 2.2 % at 422. Leading the declines was SanDisk Corp. , with the memory and storage technology company , slumped nearly 11% to close at $44.51 . Many of the tech firms in the large-cap sector saw their shares coming down by 2% or more . The list included , Juniper down 1.46 % , Amazon.com down 2.84 % , Microsoft Corp. down 2.29 % , and Cisco Systems down by 2.21 % .
The shares of SanDisk plunged after the company cut down on its forecast for the revenue of the first quarter. Earlier SanDisk had forecasted its quarterly sales to be somewhere between $1.3 billion to $1.35 billion. But the current estimate brought the sales down to around $1.2 billion. The gross margin outlook was also lowered in the report from 39% to 42%. Analysts and traders have lowered the enthusiasm for the stock and it was removed from the list of top stocks to be picked and an outperform rating was put. The cut comes in the wake of inventory burn down in smartphone market, and softening of the pricing trends which has resulted in the retail market being oversupplied.
Among the shares that did well in the markets on Wednesday was Yahoo Inc. which saw its shares picking up by 0.6 % at $15.27 . Markets welcomed Yahoo’s move to layoff around 2000 jobs as a part of its plan to save around $375 million and shifting its focus on core businesses.
The rating of Ciena Corp. , which deals in Networking equipment was raised from neutral to overweight which saw its shares prices going up and it closed the day $16.34 up 0.34 % . Tellabs Inc. also had its rating upgraded from underweight to neutral by J.P Morgan analyst Rod Hall. Its shares closed marginally down by 0.8 % .
There is a negativity in the market , the wider market including the TechStocks with none of the stocks doing well given the worries from Europe are being revisited and the payroll and ADP data not doing any good to the markets. Shares of even Apple Inc. declined on Wednesday after they had seen voluptuous rise on Tuesday .