Cisco's Margin Warning Triggers Broad Sell-off in US Tech Stocks, Nasdaq Falls

US technology stocks experienced a significant decline on Thursday, leading a poor session on Wall Street. The downturn was primarily triggered by Cisco's warning that rising memory chip prices could squeeze its profit margins. Following this announcement, Cisco's shares plunged by 12%. This concern about profitability resonated across the sector, causing the Nasdaq 100 to fall approximately 2%. The influential Magnificent 7 group of stocks also saw a decline of about 2.3%, contributing to a broader drop in the Nasdaq Composite. The sell-off highlights investor sensitivity to margin pressures within the tech industry.