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• Tech Stocks Slump

• GitLab Potential Sale

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Economy & Finance

Tech Stocks Slump

The Nasdaq fell more than 2% to a two-week low on Wednesday due to a significant drop in technology and semiconductor stocks amid concerns over potential U.S. trade restrictions on China. Nvidia and ASML were among the hardest hit, with declines of 6.2% and 11.4%, respectively. Comments from President Biden on tightening chip exports to China and Donald Trump suggesting Taiwan should pay the U.S. for defense equipment further fueled the decline. Meanwhile, the Dow rose to a record high, boosted by strong performances from Johnson & Johnson and UnitedHealth Group. The broader market decline was anticipated following a substantial rally in tech stocks, with a shift towards small-cap stocks. All major tech stocks, including Apple and Amazon, saw significant losses, contributing to a 3.5% drop in the S&P 500 Tech index. Despite the declines, energy stocks gained 1.1%, and the Dow's rise was supported by a positive earnings report from J.B. Hunt Transport Services.

Technology

GitLab Potential Sale

GitLab Inc., a U.S. software developer backed by Google parent Alphabet Inc., is exploring a sale after attracting interest from potential bidders, according to a Reuters report. The San Francisco-headquartered company, valued at about $8 billion, is working with investment bankers on the sale process, drawing interest from peers including cloud monitoring firm Datadog. Deals in the tech industry have surged by about 47% this year as companies expand their business models in response to AI disruptions. GitLab’s shares rose up to 16% in premarket trading following the news, despite a 20% decline earlier this year. GitLab, which helps companies manage their software development cycle, has over 30 million registered users, including more than half of Fortune 100 companies.

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