Shares of technology companies fell as a rotation out of the sector brought the sector to the brink of correction territory.
The SPDR Select Sector Technology exchange-traded fund, which tracks the tech sector of the Standard & Poor's 500 fell by more than 2.5% to around 131.5, close to the 129 level that would represent a 10% loss from its recent peak.
The iShares PHLX Semiconductor exchange-traded fund, which tracks the SOXX index of major chip companies, is down by more than 13% from its recent record, as supply-chain ruptures wreak havoc with the semiconductor industry. The Nasdaq Composite is roughly 8% below its recent peak.
In another sign of the shift in sentiment on the tech sector, the volume of puts that would benefit from losses on Cathie Wood's ARK Innovation exchange-traded fund hit a record high Wednesday, according to Trade Alert, a research branch of CBOE Global Markets.
Shares of Tesla, one of ARK Innovation's major holdings, lost ground after reports that most of the cars Tesla produced at its Shanghai factory in April were exported, raising questions about the strength of demand for its electric vehicles in China.
German software company SAP said a charity set up by Hasso Plattner, SAP's chairman and co-founder, had invested in a financial-services joint venture SAP had created.
Naspers, Africa's most-valuable listed company, is taking another swipe at bridging a $100 billion valuation gap between its market capitalization and the value of its stake in Chinese Internet giant Tencent Holdings, long a headache for its investors.
Beijing is considering whether to replace Vice Premier Liu He as its top economic envoy with Washington, The Wall Street Journal reported, in a decision that Biden administration officials say will indicate the depth of China's interest in economic cooperation.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-12-21 1707ET
