Tech stocks continued to drag Nasdaq for the week; Sandisk plunged 26%

The Nasdaq Composite ended the week lower, dragged down by a sell-off in chip stocks. Sandisk plunged 26% after its latest earnings release, making it the biggest loser among the index's components. The index lost 0.8% in Thursday's session, capping a week of declines for technology shares.

Other semiconductor names also fell. Micron and Nvidia each dropped more than 2%. Nvidia, with an Alpha Score of 66 out of 100, closed at $194.53, down 1.54% on the day. Rocket Lab, by contrast, rose. The stock carries an Alpha Score of 38, reflecting mixed signals.

Axon was among the gainers, though the magnitude of its move was smaller than Sandisk's drop. The divergence between chip stocks and defense-related tech names highlights the sector rotation underway, traders said.

The week's sell-off followed a strong run for the Nasdaq, which had gained in four of the prior five weeks. Rising bond yields and profit-taking contributed to the pullback, according to market participants. For broader context on index trends, see AlphaScala's stock market analysis.

Investors now look ahead to next week's consumer price index report. Some traders said a hot reading could reinforce the case for the Federal Reserve to hold rates steady, a scenario that has weighed on growth stocks.