2/5

Tech Stock Declines Lift FNGD 1.01% as Alphabet and Apple Face Challenges

The MicroSectors FANG Index -3X Inverse Leveraged ETNs (FNGD) are experiencing upward movement, driven by significant declines in key tech stocks that the index inversely tracks. Alphabet Inc. (GOOGL) saw a sharp drop of 7.66% after BofA Global Research reiterated its "Buy" rating but noted a deceleration in its Cloud segment growth, which fell short of expectations. Despite strong Search and YouTube revenues, the underperformance in Cloud services has raised concerns among investors, contributing to the stock's decline. Additionally, Apple (AAPL) is facing potential regulatory challenges in China, with the State Administration for Market Regulation considering a formal investigation into its App Store fees and policies. This scrutiny comes amid declining sales in China, further pressuring Apple's stock, which is down 1.25%.

The broader tech sector is also feeling the impact of these developments. Amazon (AMZN) and Tesla (TSLA) have both seen declines, with Amazon down 2.17% and Tesla down 1.81%. These movements are contributing to the overall negative sentiment in the tech-heavy FANG index. Nvidia (NVDA), however, bucked the trend with a 2.86% increase, buoyed by Alphabet's announcement of a substantial capital expenditure plan focused on AI infrastructure, which is expected to benefit chipmakers like Nvidia. Despite this, the overall pressure on major tech stocks is providing upward momentum for the FNGD ETF.

The FNGD ETF is currently trading at $11.97, reflecting a 1.01% increase from its previous close.