Wall Street ends lower, tech stocks retreat
Stocks on Wall Street ended Tuesday lower, a day after a blockbuster rally that saw the S&P 500 have its best day since June.
The Dow dropped nearly 150 points while the S&P also fell.
And the Nasdaq lost about 1.7% as Apple, Facebook, Tesla and other big technology names tumbled.
The tech-heavy index's fall came as investors continue to rotate out of stocks that outperformed due to the coronavirus pandemic and into others viewed as likely to do well as the economy recovers, such energy and travel companies
Nicholas Colas of DataTrek Research says - given history - the recent volatility in markets is par for the course.
"This one is playing very much true to form with past cycles, we tend to get initially a big surge off the bottom when we first see fiscal stimulus, we got all of that last year. It was a little bit heavily skewed towards technology because of the unique nature of what happened with the pandemic, but it is the kind of classic lift off the bottom that we always get. At this point in the cycle, call it six to 12 to 10, even a year on from the bottom, we do get these first rumblings of inflation that begin to lift interest rates and the market begins to go a little bit wobbly. The same exact thing happened virtually to the day during the 2010 recovery, after the '09 crisis.
Stocks on the move included Target, which said it will invest $4 billion annually over the next several years as the big box retailer upgrades stores and strengthens its online business.
Shares are up sharply over the past year but fell nearly 7% on Tuesday on the expected hit to margins.
Meanwhile, mortgage provider Rocket Companies bucked the trend, skyrocketing as much as roughly 70 percent, as the heavily shorted stock drew interest on Twitter and Reddit’s popular WallStreetBets.
