Tech Stocks Tumble as Investors Shift Focus; Semiconductor Sector Takes a Hit

Wall Street's major indexes declined as investors moved out of high-priced tech stocks into underperforming sectors. Taiwan Semiconductor Manufacturing's (TSMC) upbeat results could not sustain a rally. Jobless claims rose higher than expected, while corporate earnings from Domino's and D.R. Horton showed mixed results. Comments from Federal Reserve officials are anticipated.

Wall Street's major indexes reversed early gains on Thursday, with investors moving away from high-priced tech stocks into underperforming sectors.

Despite Taiwan Semiconductor Manufacturing’s (TSMC) positive full-year revenue forecast, the Philadelphia SE Semiconductor index fell 0.6%, affected by a continued sell-off in chip and megacap technology shares.

Meanwhile, jobless claims rose to 243,000, exceeding forecasts and signaling a cooling job market. In corporate earnings, Domino’s Pizza slumped 12.8% after missing quarterly sales estimates, while D.R. Horton surged to an all-time high on stronger profits and a $4 billion share buyback plan.