Major indices are all in the red, with the S&P 500 threatening to close below its 50-day moving average.

Magnificent Seven names are mostly moving lower. Nvidia (NVDA) is leading the pack lower, after reports Alphabet (GOOG/L) is developing TorchTPU, with PyTorch integration, aiming to erode Nvidia’s share in the industry. The underperformance of Nvidia (NVDA) is also contributing to the weakness in chipmakers.

Six sectors are in the green with Energy (XLE) rebounding into the lead, following yesterday’s underperformance. The rebound in Energy comes as the Trump administration announced a blockade of Venezuelan oil tankers.

On the flip side, Technology (XLK) holds the widest loss with Broadcom (AVGO) and Oracle (ORCL) among the sector’s worst performers. Financial Times reported that Oracle’s $10 billion data center project in Michigan will not receive backing from Blue Owl Capital (OWL).

Another factor that is adding pressure to semiconductors is that China has reportedly built a prototype EUV tool for semiconductor fabrication, by using salvaged ASML Holding N.V. (ASML) parts and ex-ASML engineers. This is part of a secret Huawei coordinated program and is expected to start working on chip production between 2028 and 2030.