Dell Technologies stock falls nearly 8% on tech selloff
Dell Technologies shares fell almost 8% on Tuesday amid a broader tech selloff and macro pressures, including concerns over the upcoming CPI report and geopolitical tensions. Despite the decline, the stock remains up 226.19% over the past year and holds above key moving averages, with momentum still bullish according to Benzinga Edge rankings.
*this image is generated using AI for illustrative purposes only.
Dell Technologies Inc. (NYSE:DELL) is trading lower by almost 8% on Tuesday as the selloff stays concentrated in growth- and tech-heavy areas of the market. The Nasdaq-100 is down 1.76% while the S&P 500 has shed 0.67%. The decline comes as investors retreat from recent levels amid macro pressures and sector rotation.
Macro Pressures And Tech De-Risking
Anxiety is hitting the market ahead of Wednesday’s May CPI report. Following April’s hot 3.8% year-over-year print, another elevated reading could further delay Federal Reserve rate cuts, a backdrop that historically pressures high-beta growth stocks like Dell by keeping borrowing costs higher for longer. Compounding this anxiety is a fresh geopolitical flashpoint after a U.S. helicopter was shot down over the Strait of Hormuz, with threats of retaliation stoking fears of energy supply disruption and sticky inflation.
Profit-Taking And Sector Rotation
Because Dell shares have enjoyed a massive run over the past year, the stock has been trading at a steep premium relative to its longer-term moving averages. This extended valuation leaves it highly sensitive to fast de-risking, prompting aggressive profit-taking as the Nasdaq leads the market downward.
Critical Price Levels To Watch For DELL
Dell's longer-term trend is still firmly bullish, but Tuesday's drop is best read as a volatility event inside an extended uptrend. The stock is up 226.19% over the past 12 months and remains well above every major moving average. At $369.99, shares are trading about 17% above the 20-day SMA ($318.59), 51.4% above the 50-day SMA ($246.33), and 129% above the 200-day SMA ($162.86).
| Metric | Value |
|---|---|
| Current Price | $369.99 |
| 20-day SMA | $318.59 |
| 50-day SMA | $246.33 |
| 200-day SMA | $162.86 |
| 12-Month Gain | 226.19% |
From a structure standpoint, the bullish moving-average stack is intact, with the 20-day SMA above the 50-day SMA and the golden cross that triggered in March still in force. The recent swing low in March and swing high in June frame the current range, and the 52-week high was also set in June. Momentum also leans constructive, with MACD above its signal line and the histogram positive, suggesting downside pressure is easing.
Dell Technologies Benzinga Edge Rankings Explained
The Benzinga Edge scorecard for Dell Technologies highlights its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 98.82) — The stock is still screening as a top-tier momentum name despite today's pullback.
- Value: Weak (Score: 20.57) — The setup looks priced for strong execution, leaving less room for error if growth expectations cool.
- Growth: Neutral (Score: 52.5) — Growth factors are closer to the middle of the pack.
DELL Stock Price Action Update
Dell Technologies shares were down 5.90% at $377.11 at the time of publication on Tuesday. Key resistance is at $469.47 (52-week high from June), while key support is at $318.59 (20-day SMA).
How might a hotter-than-expected May CPI print on Wednesday accelerate the current de-risking in high-beta tech stocks like Dell?
Will the geopolitical tensions in the Strait of Hormuz lead to a sustained sector rotation out of growth stocks into energy or defensives?
If Dell's stock approaches the $318.59 support level, will the 20-day SMA hold, or could profit-taking drive the price down to the 50-day SMA?
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