Shares of technology companies rose, but not by as much as the broad market, as traders rotated into sectors more directly affected by President Donald Trump's economic proposals.
Apple shares slid after the gadget maker's iPhone sales in China reportedly fell 18% as it fell behind domestic rival Huawei and Xiaomi in the world's largest smartphone market, according to Counterpoint Research.
After a long period of dominance, mega-cap tech stocks have trailed the performance of smaller peers in recent weeks, said one strategist. "Small and mid probably have less exposure to international trade than do large caps, so that might explain why we're seeing a bit of a rally in that area," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
Trump is planning to announce a major investment in artificial-intelligence infrastructure, The Wall Street Journal reported. OpenAI, SoftBank Group and Oracle are planning to create a joint venture called Stargate that will be focused on data-center and other infrastructure projects, with backing from Trump's government. The companies reportedly plan to put $100 billion into the initiative to start, with plans to get that up to $500 billion over four years, according to CBS News.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-21-25 1742ET