Technology companies eased as Cisco Systems fell 2.4% after it announced a restructuring plan on Wednesday that includes job cuts of 5% on lower quarterly and fiscal-year guidance.

Nvidia's rally showed signs of fatigue, with shares down 1.7%. The stock had been gaining ahead of its earnings report due Feb. 21, and it has rallied alongside other chip stocks amid optimism about the demand for semiconductors to power artificial intelligence and other advanced technology.

Nvidia has made its own bets on the development of AI. A filing late Wednesday showed Nvidia owned about 1.7 million shares of voice-based technology company SoundHound AI as of the end of December, worth roughly $3.7 million at the time. SoundHound shares were up 67%.

Cognex shares were up 6.5% after the tech company reported fourth-quarter revenue and adjusted earnings that beat analysts' expectations.

Write to Mary de Wet at

(END) Dow Jones Newswires

02-15-24 1857ET