Technology sector slumps in July as AI and memory stocks lead selloff

The technology sector (XLK) declined nearly 8% in July, driven by a selloff in AI and memory stocks despite strong earnings from giants like Microsoft and Nvidia. While names like Cognizant and Accenture surged on diversified AI exposure fears, SanDisk and Corning suffered significant losses due to valuation concerns and mixed outlooks. Analysts suggest investors are diversifying away from pure AI plays amid fears of an AI trade slowdown.