Tech stocks sink, pulling market market from highs

Business | 5 May 2021 8:14 am

Technology companies dragged indexes lower on Wall Street Tuesday, pulling the market further from its recent all-time highs, AP reports.

The S&P 500 fell by 0.7 percent, erasing its gains from last week. Big technology companies like Apple and Microsoft fell as the sector declined for the sixth straight day. Losses in communications stocks and companies that rely on consumer spending also weighed on the market, offsetting gains by financial, industrial and materials stocks. Treasury yields fell slightly.

Investors continue to focus on corporate earnings and on gauging the economic recovery’s progress. Earnings and most economic indicators have been signaling a steady improvement, but investors remain concerned about the lingering threat from the virus, inflation and other factors that could crimp progress.

A key concern has been the recovery in the employment market. Investors will get another update with this week’s jobs report.

“The entire market is down, but the tech stuff is down way more,” said Ross Mayfield, investment strategist at Baird. “If you look at the broad picture, the earnings beats are strong and we’re expecting a big” jobs number on Friday, he said.

The S&P 500 fell by 28 points at 4,164.66. The benchmark index hit an all-time high last Thursday.

The technology-heavy Nasdaq Composite dropped by 261.61 points, or 1.9 percent, at 13,663.50.

The Russell 2000 index of small-company stocks lost 29.17 points, or 1.3 ppercent, at 2,248.29.

The Dow Jones Industrial Average fared better than the other indexes. It recovered from an early stumble, adding 19.80 points, or 0.1 percent, at 34,133.03.

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