Tech Pullback: Profit-Taking or Just a Summer Slowdown?

If you hold U.S. tech stocks, the recent market action hasn’t been pretty.

For the second straight day, tech giants weighed on Wall Street, with the Nasdaq Composite slipping 0.67%. Big names like Apple, Amazon, and Alphabet each fell by more than 1%.

Palantir, which has surged more than 100% this year, also extended its losing streak to a sixth day, dropping out of the list of the top 20 most valuable U.S. companies. The sell-off followed criticism from Citron Research, which argued Palantir’s valuation was out of touch with fundamentals.

Still, there wasn’t a clear single reason for the broader dip. Some point to OpenAI’s Sam Altman warning about a potential AI bubble, though bullish analysts like Dan Ives expect tech momentum to last another 2–3 years. Others believe investors are simply locking in gains after a strong rally, with some stocks up over 80% since April.

In other words, this may be less about panic and more about portfolios, and summer profit-taking before another wave of growth.

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Source: Yeo Boon Ping, CNBC