Shares of technology companies were more or less flat as brokers said the stock market in general, and the tech sector in particular, had reached a key juncture.

The sustainability of the recent rally in mega cap tech stocks could be revealed by the movements in giant Microsoft in coming weeks, said one brokerage.

"The 'Yul Brynner' of our self-proclaimed 'Magnificent Seven' is Microsoft...if [the] ringleader can't maintain new highs, equity and credit narrative could flip from 'buy-the-dip' in [the first half of the year] to 'sell-the-rip,'" in the second half, said strategists at brokerage Bank of America Global Research.

Japanese conglomerate SoftBank Group recently bought a 25% stake in Arm Ltd. that was held by its Vision Fund unit, in a deal that values the chip designer at slightly more than $64 billion, The Wall Street Journal reported.

Bitcoin prices crashed late Thursday and traded Friday around $26,000, a far cry from levels around $30,000 less than a month ago.

WeWork said it would proceed with a 1-for-40 reverse stock split on Sept. 1, as the office-sharing company struggles to regain compliance with the New York Stock Exchange's $1 minimum closing price required to continue listing.

Cybersecurity concern Palo Alto Networks rose slightly ahead of its earnings report.


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

(END) Dow Jones Newswires

08-18-23 1700ET