Shares of technology companies fell as investors continued to rotate out of the sector after a historic rally.

Shares of Tesla fell more than 3% and are now more than 20% below their all-time intraday high as concerns about valuation ripple through the sector. Shares of Tesla rival, Chinese electric-vehicle maker NIO, fell, despite reporting quarterly sales ahead of Wall Street targets.

Shares of some of the other hot stocks, such as Microsoft, Zoom Video Communications and Amazon.com, also fell sharply.

U.S. employers shed roughly 134,000 information-technology jobs in July, according to IT trade group CompTIA, a signal that companies might be taking a wait-and-see approach as questions remain over everything from a new stimulus package to the safety of working in the office.

Technology investor SoftBank Group recorded a profit of nearly $12 billion in the April-June quarter as gains from disposing of former unit U.S. cell-phone carrier Sprint and a rebound at its $100 billion Vision Fund helped it bounce back from the worst year in its history.

A federal appeals court on Tuesday threw out a trial judge's antitrust judgment against chipmaker Qualcomm, ruling the federal government hadn't shown the chip maker engaged in illegal monopolization.

TikTok skirted a privacy safeguard in Google's Android operating system to collect unique identifiers from millions of mobile devices, data that allows the app to track users online without allowing them to opt out, a Wall Street Journal analysis has found.


 Write to Rob Curran at rob.curran@dowjones.com