CNBC Daily Open: Tech sell-off? Investors could just be taking profit and enjoying the summer

If you have any U.S. technology stocks in your portfolio (and let’s face it, who doesn’t?), you might want to look away.

For the second day in a row, tech stocks dragged markets lower, with the Nasdaq Composite slipping 0.67%. Juggernauts such as Apple, Amazon and Alphabet were more meh-nificent than magnificent, falling more than 1%.

Palantir — the standout S&P 500 stock, having more than doubled so far this year — had its sixth consecutive day in the red and lost its place among a ranking of the 20 most valuable U.S. companies.

While Palantir’s slide was partly triggered by a report from short seller Andrew Left’s Citron Research, which called the company “detached from fundamentals and analysis,” there was no single trigger for the broader pullback.

Investors could have been spooked by OpenAI CEO Sam Altman’s caution about an AI bubble forming, although some analysts dispute that assertion. “In our view the tech bull cycle will be well intact at least for another 2-3 years,” said Wall Street tech bull Dan Ives.

Or it could be something benign, like traders locking in profits. “Tech stocks,” said Carol Schleif, chief market strategist at BMO Private Wealth, “have had an incredibly strong run – with some up over 80% since the early April lows.”

Summer, after all, is far from over. Some investors might have just wanted to cash out for another round of margaritas.

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