Alphabet’s entry into the Dow Jones Industrial Average offsets broader tech declines amid AI investment concerns and memory chip shortages.
Tech stocks rebounded Monday after a 4.6% drop in the Nasdaq Composite last week, driven by skepticism over AI investments and memory supply chain bottlenecks. Alphabet’s 4% surge, following its inclusion in the Dow Jones Industrial Average, led the recovery as it replaced Verizon in the index.
Apple faced selling pressure after announcing price hikes on MacBooks and iPads to counter rising memory costs, while Microsoft’s Xbox also grappled with supply constraints. OpenAI’s potential delay of its IPO until 2027, citing caution after SpaceX’s post-IPO performance, added to investor unease.
This week will test whether investors continue profit-taking on high-flying tech names or capitalize on recent pullbacks in beaten-down stocks.