Shares of technology companies rose ahead of earnings in the sector.
Apple, which reports earnings on Thursday, picked up.
Fears that Intel’s drastic cuts foreshadowed a broader weakness in the technology sector have subsided recently.
The Intel end of the semiconductor market faced a specific set of challenges that are not everywhere, said Eric Marshall, president of the mutual fund firm Hodges Capital.
“That’s a little bit more tied to servers and PCs and all those things that went through a big upgrade cycle during the pandemic, and potentially like Y2K drove demand forward, [the pandemic] it could have pushed forward some spending on hardware,” Mr Marshall said.
Mr. Marshall said chipmakers that supply carmakers, medical companies and other niches are not seeing the same decline.
Advanced Micro Devices rose in late trading after the chipmaker’s earnings beat Wall Street targets.
PayPal Holdings plans to lay off about 7% of its staff as it continues broader cost-cutting efforts, the latest major technology employer to cut its workforce.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-31-23 1708ET
