Shares of technology companies slipped as investors grew more selective in the sector.

Shares of Palantir jumped, adding about 30%, after the consulting firm reported a record quarterly profit, with a surge in commercial revenue helping offset slowing growth in sales to the government. "We think a key theme this year will be differentiation among the Magnificent 7, with some winners and some losers (we are already hearing new terms emerging like the Fab 5 and the Super 6)," said Solita Marcelli, chief investment officer, Americas at Swiss money manager UBS Global Wealth Management.

"It's easy to forget these are seven very different companies. In our view, the ability for each of them to monetize new revenue streams, such as artificial intelligence, will be the difference on whether they remain at top or not."

Shares of Alibaba Group rallied a day before the e-commerce giant's earnings report, as part of a broad rally in the stocks of China-based companies after a sovereign fund promised to buy.

Fiserv shares surged after the financial-technology firm said fourth-quarter net income rose 11% and the provider of services to banks and financial firms projected an acceleration in 2024 organic revenue growth.

Write to Rob Curran at

(END) Dow Jones Newswires

02-06-24 1828ET