Shares of technology companies rose sharply, with the sector recouping some losses from last week's rout.
Apple shares were flat after the tech giant's unveiling of its "Apple Intelligence" AI technology disappointed some investors. Apple revealed an improved Siri voice assistant and a variety of text-generation and photo-editing capabilities, which will be compatible with the new iPhone 16 and the iPhone 15 Pro.
Apple Intelligence "may drive more demand, because, if you want to have the latest cutting-edge [software], you may need to buy new phones," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
There's been a wobble in the year-long AI rally in recent weeks. The PHLX Semiconductor index, or SOX, rebounded Monday after a recent slide triggered by disappointing earnings from Nvidia and, last week, Broadcom. "With Broadcom, I believe that the AI piece still showed a lot of growth," said Joyce.
Squarespace shares rose after investment firm Permira boosted its buyout offer to take the website-development company private.
One brokerage warned against being tempted back into the tech sector. "We remain underweight Information Technology despite arguments that it has gotten so beaten up," said strategists at brokerage Bank of America Global Research, citing valuations and the "concentration risk" engendered by the sheer size of mega-cap tech companies.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
09-09-24 1803ET
