Mumbai, Feb. 4 -- The Nasdaq slumped 336.92 points (1.4%) to 23,255.19, the S&P 500 slid 58.63 points (0.8%) to 6,917.81 and the Dow fell 166.67 points (0.3%) to 49,240.99.

A rotation out of technology stocks led to notable weakness on Wall Street, highlighted by a sharp drop in the Nasdaq. Software stocks were among the hardest hit, with the Dow Jones U.S. Software Index sliding 3.5% to a nine-month low despite a 6.9% jump in Palantir Technologies after strong quarterly results and upbeat guidance. Semiconductor stocks also declined, as seen in the 2.1% fall in the Philadelphia Semiconductor Index while NXP Semiconductors dropped 4.5% even after beating earnings estimates.

In contrast, retail shares gained from the tech selloff, with W...