Tech stocks follow broader market down slightly after Israel strikes Iran

An array of tech stocks, including those in the Magnificent Seven, trended down as markets opened on Friday, mimicking the slight declines seen across the major indices, as conflict increases in the Middle East.

The iShares Expanded Tech-Software Sector ETF (BATS:IGV) had slipped 1%. The Philadelphia Semiconductor Index (SOX) had declined 2%.

Most of the tech names in the Magnificent Seven followed suit. Google (NASDAQ:GOOG)(NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) had both declined 1%, Nvidia (NASDAQ:NVDA) slid 1.4%, Meta Platforms (NASDAQ:META) inched down 0.3% and Microsoft (NASDAQ:MSFT) dropped marginally by 0.1%. Apple (NASDAQ:AAPL) proved to be the outlier, edging up 0.4%.

Palantir (NASDAQ:PLTR), a software company specializing in artificial intelligence and data analytics, has a partnership with the Israeli Defense Ministry. Its shares had climbed 0.9%.

Monday.com (NASDAQ:MNDY), an Israel-based work management solutions company, had dropped 3%.

Most semiconductor firms were demonstrating declines. Taiwan Semiconductor Manufacturing (NYSE:TSM) was down 1.9%. Micron Technology (NASDAQ:MU) had slipped 0.7%. Qualcomm (NASDAQ:QCOM) fell 1.3%. Marvell Technology (NASDAQ:MRVL) slid 1.7%.

IBM (NYSE:IBM) and Kyndryl Holdings (NYSE:KD) both inched down 1%.

These slight declines are similar to what the broader market was showing. The S&P 500 (SP500) was down 0.6%, the Nasdaq Composite (COMP:IND) slid 0.7% and the Dow (DJI) declined 1%.

“The effects of the attack have cascaded across global markets, with a strong risk-off move for several asset classes,” Deutsche Bank’s Henry Allen said.

Late Thursday, Israel targeted Iran with a series of strikes against nuclear sites and military targets, raising fears of an all-out war in the Middle East. Iran also launched over 100 drones at Israel overnight in retaliation to Israel’s “pre-emptive” strikes. Israeli airspace has been closed, and a state of emergency has been declared as a counterattack was anticipated.

“This operation will continue for as many days as it takes to remove this threat,” said Israeli Prime Minister Benjamin Netanyahu.