Reopening trade takes a hit


A trader at the New York Stock Exchange (NYSE) at Wall Street in New York City.

JOHANNES EISELE | AFP via Getty Images

Dow Jones Industrial Average falls 300 points and Nasdaq briefly crosses 10,000 mark for first time

The Dow slid 300.14 points, or 1.09%, to close at 27,272.30. The S&P 500 dipped 0.78% to 3,207.18. The Nasdaq Composite rose 0.29% to 9,953.75 and briefly crossed the 10,000 mark on the strength of Amazon and Apple shares. Stocks were mostly under pressure on Tuesday as traders took profits from the so-called reopening trade, which has led the market’s recently sharp gains.

Reopening trade takes a hit

Airlines, cruises and retail-related names — which have outperformed during the market’s blistering run off its March lows amid expectations of the economy reopening — fell on Tuesday amid profit-taking from investors. American and United Airlines slid more than 8% each. Carnival and Royal Caribbean fell 7.51% and 6.94%, respectively. Gap Inc. and mall operator Simon Property Group both fell at least 8%. “Today’s all about giving back some of the sharp gains we’ve seen in those value names,” notes one portfolio manager.

Tech stocks rally

Shares of major tech companies rose broadly as investors rotated back into those names on Tuesday. Apple and Amazon both hit record highs, gaining at least 3% each. Facebook and Netflix gained also gained more than 3% each. Alphabet advanced 0.28%.

What happens next?

The Federal Reserve is scheduled to release its latest decision on monetary policy.

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