The week started badly for the Nasdaq 100, losing 1%, erasing gains from last Friday when the index rose following the Fed chief’s announcement. Jerome PowellDuring his highly anticipated speech in Jackson Hole, he hinted at a possible interest rate cut.

Monday brought no significant news or economic data with a direct impact on technology stocks, reflecting a cooling of risk appetite after the tech-heavy index rose more than 14 percent since its August low.

Two main factors weighed on the Nasdaq 100 on Monday, according to Invesco QQQ Trust QQQ: the decline in semiconductor stocks and the sharp drop in PDD Holdings Inc Traffic rules.

Ahead of the eagerly awaited earnings report from Nvidia Corp. NVDAwhich is to be published on Wednesday after the stock market closes.

A basket of chipmaker stocks tracked by the iShares Semiconductor ETF SOXXfell 2.5% on Monday and failed to stay above its 200-day moving average.

Since semiconductor stocks make up nearly a quarter of the Nasdaq 100’s portfolio, they alone were responsible for a 0.7 percentage point decline in index performance on the day.

The other major drag on the index was Chinese retail giant PDD Holdings, whose shares fell 28.5 percent on disappointing earnings figures, pushing the Nasdaq 100 down another 0.25 percentage points.

Nasdaq 100: Negative performance contributions on Monday

Chart: Technology stocks fall to 50-day moving average support

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Image created using artificial intelligence via Midjourney.