Shares of technology companies ticked down as major indexes completed one of their weakest openings to a year in living memory.

Apple shares have been on the retreat following Barclays' warning that its gains were unsustainable.

"The market is pausing after a dramatic surge higher," said Quincy Krosby, chief global strategist at brokerage LPL Financial.

"Yet the bears are suggesting we're seeing a change in the composition of the market. The mega cap tech names are not leading. The rationale for the profit taking in Big Tech is harvesting gains for tax purposes."

If investors had sold tech stocks in December, they would face hefty 2023 tax bills. By selling in January, the holders will have a year to deal with the tax implications, Krosby noted.

Apple supplier Foxconn Technology said December revenue of $14.84 billion, down 29% from November, suggesting iPhone sales are slowing.

Nvidia's generative artificial-intelligence dominance can potentially help generate about $100 billion of incremental free cash flow over the next two years, said analysts at Bank of America Securities say in a research note.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

01-05-24 1743ET