US equity markets closed in negative territory on Thursday, driven by sharp declines in Alphabet and Tesla following their quarterly earnings reports.
The sell-off in these heavyweight names weighed heavily on major indices, overshadowing gains in other sectors.
While the broader market retreated, pharmaceutical giants and SpaceX traded in the opposite direction, defying the prevailing downward pressure.
This divergence suggests investors are rotating capital away from high-valuation technology stocks toward sectors perceived as having more stable near-term fundamentals.
The session followed a week of cautious positioning, with investors adopting a wait-and-see stance ahead of a pivotal earnings period for technology giants including Intel.
The recent selling pressure in the semiconductor sector, despite record results from TSMC, indicates that market sentiment remains fragile even when corporate performance is strong.